The right of a secured creditor to receive protection against the decrease in value of its interest in the debtor's property during bankruptcy proceedings (§ 361, Bankruptcy Code). It is also required when the debtor uses, sells, or leases a secured creditor's collateral or if a creditor's lien on the collateral is primed by a senior or equal lien approved by the court in a DIP financing. This protection may take the form of periodic cash payments, an additional lien, or other relief agreed to by the parties.

For further information on adequate protection, see Practice Note, Adequate Protection: Overview.