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In January 2020, we analyzed a split among the Circuit Courts regarding whether a non-debtor holding a debtor’s property on the petition date has an affirmative obligation under section 362(a)(3) of the Bankruptcy Code to return that property to the debtor immediately following the filing of the bankruptcy petition.  Automatically upon a debtor’s filing its bankruptcy petition, section 362(a)(3) stays “any act to obtain possession of property of the estate or of property from the estate or to
exercise control over property of the estate.”  As discussed in our 2020 article, various courts of appeal have wrestled with whether the words “exercise control over property of the estate” encompass a non-debtor’s retention of property in its possession at the beginning of the debtor’s bankruptcy case.  If the answer to this question is “yes,” then a debtor need not take any action to bring estate p ....

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