Voluntary Lien


DEFINITION of 'Voluntary Lien'

A claim that one person has over the property of another as security for the payment of a debt. Liens are attached to the property and not to a person. A voluntary lien is contractual or consensual, meaning that the lien is created by an action taken by the debtor, such as a mortgage loan to buy real estate.

BREAKING DOWN 'Voluntary Lien'

A voluntary lien is a type of lien that exists because of an action taken by a debtor. This is the opposite of an involuntary lien that occurs by law, such as a tax or special assessment lien that is imposed by a regulatory authority.

  1. Lien

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  3. Blanket Lien

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  4. Judgment Lien

    A court ruling that gives a creditor the right to take possession ...
  5. Second Lien Debt

    Debts that are subordinate to the rights of other, more senior ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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