After Acquired Property
The term after acquired property refers to property that is acquired after an event, such as a bankruptcy. A bankrupt who wins the lottery after filing a bankruptcy has “after acquired property”. In that case they ought to simply pay off their creditors and their trustee and they could apply to court to have the bankruptcy annulled, as if it never happened.
After acquired property takes many forms and very few people win the lottery – although it has happened to bankrupts in the past. Other common forms of after acquired property include inheritances, increases in value of real property or property that is gifted.
In each case, after the individual has filed a bankruptcy the after acquired property is properly turned over to the Licensed Insolvency Trustee for the benefit of creditors. Most people don’t come into after acquired property through a bankruptcy but when they do the best way to tackle the issue is with an honest conversation with the trustee on the file.
To learn more about after acquired property call the office at: 519-646-2222