Secured debt
A creditor's claim that is secured by a lien of some type in a debtor's property either by the debtor's own agreement or involuntarily with a court judgment or taxes.
Some examples include mortgages, equity lines of credit, and vehicle and equipment loans. Other kinds of debt that are often secured by liens on property include Purchase-money security interest, judgment liens, tax liens, and blanket security liens.
Definition from Nolo’s Plain-English Law Dictionary
A debt that gives the creditor the right to take property pledged as security for the debt (collateral) if the debtor does not pay. For example, a creditor can repossess a car if the debtor defaults on the car loan. Compare: unsecured debt
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm
