bankruptcy

Secured Debt

A debt backed by collateral (property) that the creditor can seize if the debtor defaults.

Encyclopedia entry: Secured Debt

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Secured debt is a creditor ’s claim that is secured by a lien on the debtor ’s property . This lien can be established either by the debtor’s agreement or involuntarily through a court judgment or tax obligation .

Some examples include mortgages , equity lines of credit , and vehicle and equipment loans . Other kinds of debt that are often secured by liens on property include purchase-money security interest , judgment liens , tax liens , and blanket security liens .

[Last reviewed in June of 2024 by the Wex Definitions Team
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).