What defines a general lien?

A general lien is defined as a type of lien that attaches to all property owned by an individual, rather than being limited to a specific piece of real property or a particular transaction. This characteristic allows creditors to claim multiple assets as security for the debt owed, which may include both real property (like homes and land) and personal property (like cars and bank accounts).

This broad nature of a general lien is significant because it provides creditors with a wider scope of recourse to collect debts. For instance, if an individual has outstanding tax debts, a general lien allows the government to place a claim not just on their real estate but also on their vehicles, financial accounts, and other personal belongings, which helps ensure that creditors have means to recover amounts owed through various assets.

The other options focus on narrower definitions that do not capture the essence of what makes a general lien distinct in terms of its application to all property owned by an individual. Thus, the correct understanding of a general lien is its encompassing nature regarding all types of property owned by the debtor.