Chattel Liens

A chattel lien is a legal claim against personal property (chattel) to secure payment of a debt. It allows a creditor to retain possession of a person’s movable property, like vehicles or equipment, until the debt is paid. For example, if you borrow money and use your car as collateral, the lender can claim your car through a chattel lien if you fail to repay. This type of lien ensures that the lender has a right to the value of the property to recover what’s owed, providing protection for both parties involved in the transaction.