“Lien” is a authorized time period pronounced as “lee-en.” It refers to a declare or cost towards a property as safety for a debt or obligation. For instance, a mechanic’s lien is a authorized declare towards a property for unpaid work or supplies.
Liens are vital as a result of they offer collectors a approach to safe their claims towards a property. This may be particularly vital in circumstances the place the debtor is unable to pay their money owed. Liens can be used to guard the rights of property house owners, as they’ll forestall collectors from seizing property that’s not topic to the lien.
