“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 necessary as a result of they offer collectors a technique to safe their claims in opposition to 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 homeowners, as they’ll forestall collectors from seizing property that’s not topic to the lien.
