Creditor-debtor attorney, is it safe when using a jeonse deposit as collateral?

Hello. I am a creditor-debtor attorney at Daeryun Law Firm (LLC).

The jeonse deposit corresponds to a monetary claim that the tenant can recover from the landlord when the lease ends.

Therefore, lending money using this jeonse deposit return claim as collateral is legally possible.

However, simply receiving the jeonse contract does not give it collateral effect.

To use a jeonse deposit as collateral, you must necessarily conclude a claim assignment contract for the jeonse deposit return claim, and one of the following procedures must be followed for it to have effect against third parties.

- When the landlord has explicitly consented to the fact of the claim assignment

- When the tenant notifies the landlord of the claim assignment by content-certified mail

If these procedures are not carried out, even if the debtor actually fails to repay, it is difficult to exercise the jeonse deposit return as collateral.

In addition, if the relevant jeonse deposit return claim has already been assigned to another person or if rights restrictions such as seizure or provisional seizure have been set, the value as collateral may be nonexistent, so prior confirmation is necessary.

For details, please consult a creditor-debtor attorney.

A creditor-debtor attorney comprehensively reviews the legality of collateral establishment, priority, and recovery possibility according to individual cases, and presents a safe claim securing plan.