“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 necessary as a result of they offer collectors a strategy to safe their claims towards a property. This may be particularly necessary 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.
