Legal Dictionary of Pakistan

antecedent debt

1. Contracts. An old debt that may serve as consideration for a new promise if the statute of limitations has run on the old debt. See PREEXISTING-DUTY RULE. 2. Bankruptcy. A debtor's prepetition obligation that existed before a debtor's transfer of an interest in property. ( For a transfer to be preferential, it must be for or on account of an antecedent debt. See PREFERENTIAL TRANSFER.