Legal Definitions - successor titulo lucrativo post contractum debitum

The Latin legal term successor titulo lucrativo post contractum debitum refers to a situation where an individual or entity receives an asset as a gift or for free (a "lucrative title") from another person, *after* that person has already incurred a debt. Essentially, it describes someone who becomes a recipient of a valuable item without paying for it, at a time when the original owner owes money to someone else.

This concept is particularly relevant in legal contexts concerning creditors' rights, as it addresses situations where a debtor might try to transfer assets away to avoid them being claimed by creditors. If the transfer is deemed a "successor titulo lucrativo post contractum debitum," it might be challenged by creditors seeking to recover the debt.

Here are some examples to illustrate this concept:

• Example 1: Real Estate Gift

  Imagine a homeowner, Mr. Davies, takes out a significant personal loan from a bank. A few months later, while still owing a substantial amount on the loan, Mr. Davies decides to gift his vacation home to his daughter, Sarah, without her paying anything for it. In this scenario, Sarah would be considered a successor titulo lucrativo post contractum debitum. She received a valuable asset (the home) for free (lucrative title) after her father had already incurred a debt (the bank loan). If Mr. Davies later defaults on his loan, the bank might argue that the transfer to Sarah was an attempt to shield assets from creditors.

• Example 2: Business Asset Transfer

  Consider a small business owner, Ms. Chen, whose company owes a large sum to a supplier for materials. Before paying off this debt, Ms. Chen transfers ownership of a valuable piece of company machinery to her brother, Mark, as a birthday gift. Mark did not pay the company for the machinery. Here, Mark is the successor titulo lucrativo post contractum debitum. He received a valuable business asset without payment (lucrative title) after the company had already contracted a debt with its supplier. If the company faces financial difficulties and cannot pay the supplier, the supplier might challenge the transfer of the machinery to Mark.

• Example 3: Inheritance and Debt

  Suppose Mr. Henderson has accumulated significant credit card debt. Knowing his health is failing, he updates his will to leave a substantial sum of money and a valuable art collection to his nephew, David, as a direct inheritance, rather than selling the assets to pay off his debts. After Mr. Henderson's passing, David receives these assets for free. David would be considered a successor titulo lucrativo post contractum debitum concerning Mr. Henderson's creditors. He inherited valuable assets (lucrative title) after Mr. Henderson had already incurred credit card debts. The credit card companies might attempt to claim the inherited assets to satisfy the outstanding debts, arguing that the transfer was made after the debt was contracted.