What is a lien?

A lien is a legal claim against a property or asset that is used as security to ensure that a creditor is paid back for a debt. A lien gives the creditor the right to keep possession of the property or asset until the debt is paid, or until the lien is released. In New York, a lien can be placed on a variety of assets, including real estate, vehicles, boats or other moveable property. When a lien is placed on property, the creditor has a claim on the asset that prevents the owner from selling or transferring the asset until the lien has been paid off or released. The lien also grants the creditor priority over other creditors, which means that they are the first to be paid if the asset is ever sold or liquidated. In New York, creditors must follow certain processes to place a lien on a debtor’s property. First, the creditor must file a lawsuit against the debtor, and a court must issue a judgment in favor of the creditor. After the judgment has been issued, the creditor must file a notice of lien with the county clerk or the Secretary of State, depending on the type of property being liened. Once the lien has been filed, the creditor can seek to foreclose on the lien or take possession of the asset if the debtor does not pay the debt.

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