debtor

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Debtor

Debtor

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.

debtor

An individual or organization that owes a debt or has an obligation to another party. Compare creditor.

debtor

a 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’.

See CREDITORS, DEBT, CREDIT CONTROL, WORKING CAPITAL, BAD DEBT.

debtor

(1) One who owes a debt.(2) In bankruptcy,the person who requests protection under the bankruptcy laws.

References in periodicals archive ?
The Aspen court perhaps stretched Debtor and Creditor Law section 151 to cover setoffs in the face of a restraining notice, (514) but section 151 cannot be made to extend to payments where the creditor chooses to lose rather than use the setoff opportunity.
This provision seeks to have the court look to the pre-petition history between the debtor and creditor as a definition of ordinary course of business.
To establish the industry standard, the creditor must usually rely on evidence that is external to the debtor and creditor. Generally, reliance on the testimony of the creditor attesting to the industry standard may be ineffective as it blurs the distinction between the objective and subjective elements to the ordinary course of business exception.
The court found that the controlling factor in determining whether a payment was made in the ordinary course of business of the debtor and creditor is the consistency of the timing of the payment during and prior to the preference period.
The first two parts of the ordinary course defense (debt incurred in the ordinary course and payment made in the ordinary course) are the subjective part of the defense which focuses on the relationship between the debtor and creditor. The first prong (debt incurred in the ordinary course, such as extensions of trade credit) is usually satisfied.
Late payments may be in the ordinary course of business of the debtor and creditor if they are consistent with a payment history of similarly late payments.
The creditor must prove that the debt was incurred and the payment was made in the ordinary course of business of the debtor and creditor and was not "unusual," "idiosyncratic" or otherwise inconsistent with some industry standard.
If the parties are both acting within the normal courses of their businesses and the actions are generally consistent with their specific business history when the debt is created and paid, it should not matter whether such ordinary courses of business conform to what is generally done in the industries of both the debtor and creditor. The requirement of subparagraph (C), if known to both the debtor and creditor when they enter into their transaction in the first place, cannot help but squelch their creativity in managing their businesses.