Secured Claim | Practical Law

Secured Claim | Practical Law

Secured Claim

Secured Claim

Practical Law Glossary Item 2-382-3800 (Approx. 2 pages)

Glossary

Secured Claim

A claim held by a creditor who has a perfected lien or a right of set-off against the debtor's property. A claim is secured to the extent of the creditor's interest in the debtor's property or to the extent of the amount subject to set-off. In a bankruptcy case, secured claims are satisfied before any other claims out of the proceeds of the collateral that secure them.