Debtor
A debtor is an individual or entity that owes money to another party, known as a creditor. This debt can arise from loans, credit purchases, or other financial agreements. Debtors are obligated to repay the borrowed amount, often with interest, according to the terms of the agreement. Debts can be secured, meaning they are backed by collateral, or unsecured, relying solely on the debtor’s promise to pay. Managing debt responsibly is crucial to maintaining financial health and avoiding potential legal consequences, such as bankruptcy or collection actions if the debt remains unpaid.
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A debtor is an individual or organization that owes money to another party, known as a creditor. This can happen when someone borrows money, takes out a loan, or purchases goods or services on credit. The debtor is responsible for repaying the borrowed amount, often with interest, according to the terms agreed upon. If the debtor fails to repay, it may lead to legal action or damage to their credit rating. Essentially, a debtor is anyone who has a financial obligation to pay back money that they have received.