debtor(redirected from Debtor and Creditor)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.
A person, company, or other organization that owes money to another individual, company, or organization. Generally speaking, a debtor acquires debt for a specific purpose, such as to fund a college education or to purchase a house. In business and government, debt is often issued in the form of bonds, which are tradeable securities entitling the bearer to repayment at the appropriate time(s), making the issuing government or business the debtor. A debtor almost always compensates a creditor with a certain amount of interest, representing the time value of money. However, some areas of finance, especially Islamic banking, do not allow debt with interest.
An individual or organization that owes a debt or has an obligation to another party. Compare creditor.
debtora person or business that owes money to individuals or firms for goods, services or raw materials that they have bought but for which they have not yet paid (trade debtors) or because they have borrowed money Debtors are also termed ‘accounts receivable’.
(1) One who owes a debt.(2) In bankruptcy,the person who requests protection under the bankruptcy laws.