Knowledge Focus: General Lien
General Lien
The right of a creditor to have all of a debtor's property, both real and personal, sold to satisfy a debt. Moreover, a lien is a claim against property to secure a debt owed by the property owner to the lien holder. A lien ties up the property, preventing the owner from selling the property until the debt is satisfied. If debt is not paid, the lien holder can demand through the courts that the property be sold and the proceeds of the sale applied to the debt. A valid lien is therefore a very useful tool for collecting a debt.
