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Simple English definitions for legal terms
legal lien
Read a random definition: last-survivor life insurance
A quick definition of legal lien:
A legal lien is when someone owes money to another person and the creditor keeps something valuable that belongs to the debtor until the debt is paid off. The creditor cannot sell the item, but they can keep it until the debt is paid. This is a way to make sure the debtor pays what they owe.
A more thorough explanation:
A legal lien is a type of lien that allows a creditor to keep possession of a property as security for a debt owed to them. The creditor cannot sell the property for money, but they can hold onto it until the debt is paid off.
- A mechanic who fixes a car and is not paid can keep the car until the owner pays the bill.
- A landlord who is owed rent can keep the tenant's belongings until the rent is paid.
These examples illustrate how a legal lien works. In both cases, the creditor has a legal right to keep possession of the property until the debt is paid. This gives the debtor an incentive to pay off the debt so they can regain possession of their property.