Secured debt is a creditor’s claim that is secured by a lien on the debtor’s property. This lien can be established either by the debtor’s agreement or involuntarily through a court judgment or tax obligation.
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.
[Last updated in June of 2024 by the Wex Definitions Team]