After-Acquired Property

After-Acquired Property

1. Property that a person buys after an activity has taken place, usually after either a bankruptcy has been filed or a will has been made. For example, if one buys 10 acres after filing bankruptcy, those 10 acres are considered after-acquired property. How after-acquired properties affect an activity (such as whether they can be used to repay creditors in a bankruptcy or how they are distributed in a will) differs according to individual situations.

2. In law, property one sells without owning but then subsequently buys. For example, suppose Joe sells Bob 10 acres, but those 10 acres in fact belong to Frank. If Joe takes Bob's money and buys Frank's 10 acres afterward, they are automatically transferred to Bob. See also: Fraud.
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