debtor

noun debt·or \ ˈde-tər \

|Updated on: 21 Aug 2018

Examples: debtor in a Sentence

Definition of debtor

1 : one guilty of neglect or violation of duty

2 : one who owes a debt

See debtor defined for English-language learners

See debtor defined for kids

Examples of debtor in a Sentence

The debtor agrees to pay the debt over a three-year period.

Recent Examples of debtor from the Web

Although debtors prisons were banned in the U.S. nearly 200 years ago, some people who owe money are once again being jailed for civil debts, according to a report from the American Civil Liberties Union.

— matthew martinez, star-telegram, "He strangled his wife so she wouldn't go to jail for car debt, Texas cops say," 10 July 2018
If a creditor sues a debtor in civil court, sometimes they are required to attend another court date, to answer questions about their finances.

— matthew martinez, star-telegram, "He strangled his wife so she wouldn't go to jail for car debt, Texas cops say," 10 July 2018
Another time, in Atlantic City, Shulaya himself confronted a debtor, who then provided a $3,000 necklace as partial repayment.

— garrett graff, Longreads, "A Vor Never Sleeps," 5 June 2018
Most are past due real estate taxes; some debtors have unpaid water bills.

— bill leukhardt, Courant Community, "Berlin Tax Deed Auction Targets Chronic Delinquent Properties," 13 July 2018
After all, why stop at shows that redistribute cable-television dollars to student debtors?

— derek thompson, The Atlantic, "Win a Game Show, Pay Off Your Student Debt," 12 July 2018
Deborah Caruso, the bankruptcy trustee representing ITT's debtors, last month filed a $250 million lawsuit against Modany and eight former ITT board directors.

— james briggs, Indianapolis Star, "Top ITT executives agree to fines, ban from top corporate jobs in SEC settlement," 9 July 2018
Jia was named to a national blacklist of debtors, and some of his assets were frozen by Chinese courts.

— sean o'kane, The Verge, "Faraday Future reveals the source of its $2 billion investment as a co-founder steps away," 26 June 2018
But after three filings, Snodgrass said he was told that the next petition must be filed using a different debtor's name.

— cassie dickman, sacbee, "Federal grand jury indicts Elk Grove woman on 18 counts related to bankruptcy scheme," 29 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'debtor.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of debtor

13th century

in the meaning defined at sense 1

See Words from the same year

NEW! Time Traveler

Financial Definition of DEBTOR

debtor

noun

What It Is

A debtor is a person or entity legally required to provide a payment, service or other benefit to another person or entity (the obligee). Debtors are often also called borrowers or obligors in contracts.

How It Works

Companies that issue bonds are perhaps the most well-known debtors. They must provide their bondholders with set interest and principal payments on specified dates and in some cases must be willing to convert that debt into equity at specified ratios or repay the debt early if certain events occur.

However, a debtor also might be required to perform particular tasks or even refrain from performing certain actions. When a debtor fails to meet its obligations, the debtor is sometimes considered in default.

Why It Matters

Debtors are subject to contractual obligations. As such, if they do not fulfill their obligations, the creditors usually have the right to seek recourse in court. A significant amount of reputational damage can also occur when an entity, especially a public company, fails to meet its obligations. In some cases, even the speculation that a debtor might not fulfill its obligations can cause its stock price to go down and make it very difficult to obtain financing or other help later.

Source: Investing Answers