Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

secured claim

Read a random definition: pawnee

A quick definition of secured claim:

A secured claim is when someone owes money to another person or company, but they have given something valuable as a guarantee that they will pay back the money. This is called collateral. For example, if someone borrows money to buy a car, the car is the collateral. If they don't pay back the money, the lender can take the car to get their money back. This is called a secured transaction, and it is governed by a law called Article 9 of the UCC.

A more thorough explanation:

A secured claim is a type of claim in which the creditor has a right to take possession of specific property if the debtor fails to pay back the debt. This property is called collateral and is used to guarantee payment of the debt.

For example, if a person takes out a car loan, the car serves as collateral for the loan. If the person fails to make payments, the lender can repossess the car to recover the debt.

Another example is a mortgage. The house serves as collateral for the loan. If the borrower fails to make payments, the lender can foreclose on the house to recover the debt.

Secured claims are important because they give the creditor a higher chance of recovering the debt if the debtor defaults. However, they also require the debtor to put up collateral, which can be a risk if they are unable to make payments.

secured | securitas

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.