Ideal Lien Creditor Law and Legal Definition
Ideal lien creditor is a term used in the bankruptcy law. It is relative to the preferred status of a trustee in bankruptcy in asserting priorities. Ideal lien creditor is a hypothetical creditor holding a lien by legal or equitable proceedings at the date of bankruptcy, whereby the trustee in bankruptcy, being armed with such a lien by virtue of a provision of the Bankruptcy Act, is enabled to assert priorities as against secret liens, unfiled or unrecorded mortgages, and the like.
