What is debtors interest in property?

Debtors' interest in property refers to the right of a debtor to retain possession or use of property that is subject to a debt obligation. This interest typically arises when a debtor has borrowed money and used the property as collateral, granting the creditor certain rights over the property in case of default. However, the debtor retains a legal interest in the property until the debt is fully paid or otherwise resolved. Essentially, it reflects the debtor's stake in the property despite the encumbrance of the debt.