Definition of «adequate protection»

The term "adequate protection" refers to a legal principle that requires creditors to provide sufficient security or assurance for debts owed by their debtors. This means that if a creditor is seeking to collect on a debt, they must ensure that the debtor has enough assets or collateral to cover the amount owed in case of default. The concept of adequate protection is often used in bankruptcy proceedings and other financial transactions to protect both creditors and debtors from potential losses.

Sentences with «adequate protection»

  • This means it won't begin to provide adequate protection for many taller people in rear - end crashes. (iihs.org)
  • This is the cat collar that can provide adequate protection for fleas and ticks. (tinpaw.com)
  • However, car defects can result in a vehicle that does not provide adequate protection from the force of a collision. (erlegal.com)
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