Final answer:
A lien involves securing a debtor's property as security or payment for a debt. The creditor has the right to sell the property if the debtor fails to meet their repayment obligations.
Step-by-step explanation:
A lien involves securing a debtor's property as security or payment for a debt. It is a legal claim that gives the creditor the right to sell the property if the debtor fails to meet their repayment obligations. The property serves as collateral, which the creditor can seize and sell in order to recover the debt.
For example, if a person takes out a loan to buy a car, the car may be used as collateral. If the borrower fails to make the required loan payments, the lender can place a lien on the car and potentially repossess and sell it to recover the outstanding debt.