Definition of debtor
1
: one guilty of neglect or violation of duty
2
: one who owes a debt
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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
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Sometimes debtors end up buying back their properties at a discount.
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The claim lists her as the debtor, but a separate document shows Bishop told the court that the school is responsible.
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This theme is single handedly responsible for recurring themes that have artists indebted to labels and various debtors indefinitely.
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Given the importance of being able to repossess the collateral for secured loans, NPL investors have been taken aback by a proposal to prevent any action against a debtor without the involvement of a court.
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Le and a co-defendant, Kim Nguyen, 25, forced the debtor, who’s not named in court documents, into Nguyen’s car on Nov. 14, 2o16 at knifepoint, the filing said.
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That analysis showed McKinsey initially identified by name a total of 59 connections to participating debtors, creditors, lawyers and accountants in those cases.
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His debtors also included Josh Mandel, who is the state treasurer, and Larry Obhof, the Ohio Senate president.
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The Economist reported in August 2015 that US student loan debt exceeded $1.2 trillion, with a substantial portion of debtors in default within a few years of graduation.
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
Financial Definition of DEBTOR
debtor
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
DEBTOR Defined for English Language Learners
Definition of debtor for English Language Learners
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: a person, organization, government, etc., that owes money
DEBTOR Defined for Kids
Law Dictionary
Learn More about debtor
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See words that rhyme with debtor Spanish Central: Translation of debtor Nglish: Translation of debtor for Spanish speakers Britannica English: Translation of debtor for Arabic speakers Britannica.com: Encyclopedia article about debtor
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