also: しゃっきんのかた
collateral for a loan; security for a debt
Refers to something pledged as security for a loan; often used in contexts of borrowing money, sometimes with a nuance of desperation or last resort.
He had his house taken as collateral for the debt.
I left my watch as security for the loan.
Common spelling using katakana for カタ to distinguish from the kanji 形 or 方.
Hiragana spelling; also common and unambiguous.
Kanji spelling; 形 here means 'form' in the sense of 'token' or 'pledge', but may be confused with other readings.
The phrase combines 借金 (debt) with カタ (form/pledge). カタ here derives from 形 (かた), meaning 'form' or 'token', used in the sense of something left as a pledge.