Article 1388
ELI5— what this means for you
Anyone who knowingly acquires property that was transferred to cheat creditors must compensate those creditors if they can no longer return the property — and if the property changed hands multiple times, the first person to acquire it in bad faith is liable first.
Official text — RA 386
Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them.
If there are two or more alienations, the first acquirer shall be liable first, and so on successively. (1298a)
Source: lawphil.net (RA 386 as amended)
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