Which statement best describes a claim?

Which statement best describes a claim?

• A. A form of property title.
• B. A right to payment by a creditor against a debtor.
• C. A tax lien.
• D. A credit score.

Answer: (B)

A claim is the creditor’s legal right to collect money owed by a debtor. It represents the entitlement to payment that arises from a contract, loan, services rendered, or other obligation, and it can be pursued through negotiation, civil action, or other enforcement means. This differs from ownership of property, which is about holding a title to it. It’s also not a tax lien, which is a security interest placed on property to secure tax payment, nor is it a credit score, which is simply a numeric measure of creditworthiness. Therefore, the statement that best describes a claim is the right to payment by a creditor against a debtor.

A claim is the creditor’s legal right to collect money owed by a debtor. It represents the entitlement to payment that arises from a contract, loan, services rendered, or other obligation, and it can be pursued through negotiation, civil action, or other enforcement means. This differs from ownership of property, which is about holding a title to it. It’s also not a tax lien, which is a security interest placed on property to secure tax payment, nor is it a credit score, which is simply a numeric measure of creditworthiness. Therefore, the statement that best describes a claim is the right to payment by a creditor against a debtor.