Legal Topics > Bankruptcy >

Nolo's Plain-English Law Dictionary

Legal Dictionary Home

Need Professional Help? Talk to a Lawyer
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
searchbox small
Collateral
Property that someone promises or gives to a creditor to guarantee payment of a debt -- thus creating what's called a secured debt. If the borrower defaults on the loan, the creditor may seize the property and sell it to cover the debt.


Need Legal Help?
Get Informed Check out our thousands of free articles on everyday legal topics--they're accurate, up to date, and written in plain English.
Do It Yourself With Nolo's easy-to-use books, legal forms, online services, and software, you can handle many routine legal tasks yourself.
Talk to a Lawyer Just enter your zip code to connect with a lawyer serving your area.
LA-WS5:0.9.22.120522.13848+