What Is A Secured Transaction?

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What Is A Secured Transaction?

Secured transactions are transactions in which the debtor gives the creditor a special right, or lien, on the debtor's property in order to assure payment of the debt. The property may be real property or personal property. The creditor is then a secured creditor as opposed to an unsecured creditor.

Other Pennsylvania Collections-Creditors Rights FAQs

Q: What Is A Debtor?
A: A debtor is a natural or legal person who owes money or another obligation to someone else. For example, a person who borrows money from a bank is a debtor.
Q: What Is A Creditor?
A: A creditor is a natural or legal person to whom a debt is owed. In the example of a debtor being the person who borrows money from a bank, the bank is the creditor of … More
Q: What Is A Lien?
A: A lien is a special right in a debtor's property that the law gives to a creditor in order to assure payment of a debt. Liens may arise in a variety of ways.