“Lien” is a authorized time period pronounced as “lee-en.” It refers to a declare or cost in opposition to a property as safety for a debt or obligation. For instance, a mechanic’s lien is a authorized declare in opposition to a property for unpaid work or supplies.
Liens are essential as a result of they provide collectors a technique to safe their claims in opposition to a property. This may be particularly essential in instances the place the debtor is unable to pay their money owed. Liens may also be used to guard the rights of property house owners, as they will forestall collectors from seizing property that isn’t topic to the lien.
