A legal claim or encumbrance which property may be seized to satisfy debt is called what?

• A. Lien
• B. Mortgage
• C. Judgment
• D. Liquidation

Answer: (A)

A lien is a legal claim against property that serves as security for a debt. It encumbers the asset and gives the creditor the right to seize or foreclose on the property to satisfy the obligation if the debt isn’t paid. A mortgage is a specific type of lien on real estate used to secure a loan, so it fits under the broader concept but isn’t the general term described. A judgment is a court ruling that creates an obligation and can lead to a lien, but the term for the encumbrance itself is not the judgment. Liquidation refers to selling assets to raise money, not the claim against the property.