Secured Claim Law and Legal Definition
A secured claim refers to a claim that is secured by mortgage, trust deed, pledge, deposit as security, or escrow. It does not include special deposit claims or claims against general assets.
In bankruptcy, a secured claim refers to a statement to collect a secured debt. A creditor with a secured claim is entitled to preclude other creditors from collecting the property that serves as the collateral, since s/he has got a pre-existing interest in that property.
The following is an example of a case law on secured claim:
An allowed claim of a creditor secured by a lien on property in which the estate has an interest is a secured claim to the extent of the value of such creditor's interest in the estate's interest in such property. [In re Olympia Holding Corp., 127 B.R. 478, 480 (Bankr. D. Fla. 1991)].
