After Acquired Property Law and Legal Definition
After-acquired property is personal or real property acquired by a debtor after he/she has signed a security agreement that secures the debt with all his/her property. Therefore, the new property also becomes collateral for the debt. This includes improvements to real property which is security on a deed of trust or mortgage and personal property pledged in a security agreement. The intent is to subject additional property to a creditor's lien and remove doubt about whether improvements or repairs fall under an agreement in a secured transaction.
After-acquired property is property which a debtor acquires after the execution of a mortgage or other form of indebtedness and which secures the indebtedness. Under the Uniform Commercial Code (UCC), which has been adopted in some form by almost all states, after-acquired property includes improvements to real property which is security on a deed of trust or mortgage and personal property pledged in a security agreement.
In bankruptcy law, it is property acquired by the bankrupt person after he/she has filed a petition in bankruptcy. This after-acquired property is free from creditors' claims and not included in the assets which may be used to pay any debts which existed at the time of bankruptcy filing. There are certain exceptions to this rule for certain property right acquired or vested within six months of filing the bankruptcy petition.
