Meaning & Definition of word "Debtor"

Debtor

/ˈdɛb.tər/

1. A person or entity that owes money to another party.
- Example: The debtor was unable to repay the loan on time.
2. In a legal context, someone who is declared bankrupt or is in a position of insolvency.
- Example: The court ruled that the debtor must liquidate assets to pay off creditors.
3. A person or entity that is indebted to another, especially one that has received goods or services on credit.
- Example: As a debtor, she was required to submit a financial statement to the lender.
4. Someone who has received a loan and has a contractual obligation to repay it.
- Example: The debtor has a grace period before the interest starts to accumulate.

●Middle English, from Latin 'debitor', meaning 'one who owes'.

judgment debtor:

A debtor against whom a court has issued a judgment for the payment of a debt.

debt relief:

The partial or total forgiveness of debt, or the slowing or stopping of debt growth.

secured debtor:

A debtor who has pledged collateral for a loan.

creditor:

A person or entity to whom money is owed.

debt:

Money that is owed or due.

bankruptcy:

The legal status of a person or entity that cannot repay the debts it owes.

Meaning: Broke

● Example Sentence: After spending all his savings, he felt totally broke and like a debtor.

Meaning: On the hook

● Example Sentence: If you borrowed money, you're on the hook until you pay it back.