What is a lien in civil law?

A lien is a legal right to keep possession of another person’s property until debt or other obligation is met. In civil law, a lien can act as a way for creditors to ensure they are repaid by allowing them to keep control of a debtor’s property until a debt is satisfied. In New Hampshire, this form of debt collection is recognized under the UCC (Uniform Commercial Code) Article 9. According to this code, any creditor can put a lien on a piece of property (e.g. a car or boat) if the debtor fails to meet their obligations. The lien is legally binding, giving the creditor the right to take control of the property in lieu of payment. This makes it difficult and costly for a debtor to transfer or sell the property without first releasing the lien. A lien is also referred to as a ‘security interest’ as it gives the creditor some security in case the debtor is unable to fulfil their obligations. In New Hampshire, a lien is usually created through a written agreement between two parties, whether it is a financial institution or a trade company. The lien is then registered with the state court registrar, providing an additional layer of protection for the creditor. In summary, a lien is a tool used in civil law to secure the repayment of debt by creditors in New Hampshire.

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What is a lien in civil law?

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