liens
Definition
A lien is a legal claim that someone holds against your property until you pay off a debt you owe them. Think of it like a financial flag planted on your property that warns others that someone has a right to that asset if you don't settle up. Liens can attach to your business equipment, vehicles, real estate, or other valuable assets.
Example
If you hire a contractor to renovate your shop and then fail to pay them, they can file a mechanic's lien against your building, which means you cannot sell or refinance that property until you pay what you owe.
Watch Out
A lien on your property can seriously damage your credit and make it nearly impossible to sell or borrow against that asset until the debt is fully resolved.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.