Equity stripping

{
  "id": "MLC-T-INS-001341",
  "term": "Equity stripping",
  "field": "Insurance and risk management",
  "definition": "A risk management or asset protection strategy involving the placement of liens or encumbrances on a property to reduce its apparent equity. The goal is to make the asset less attractive to potential creditors or plaintiffs in a lawsuit by decreasing the value that could be seized in a judgment. This is accomplished by taking out loans and securing them against the property, with the loan proceeds moved to a more protected location.",
  "url": "https://mlchart.com/terminology/insurance/equity-stripping/"
}