Define: Debtor

UK Accounting Glossary

Definition: Debtor


Quick Summary of Debtor


A person or organisation that owes money to the entity.




What is the dictionary definition of Debtor?

Dictionary Definition


  1. economics A person or firm that owes money; one in debt; one who owes a debt
  2. legal One who owes another anything, or is under obligation, arising from the express agreement, the implication of law, or principles of natural justice, to pay money or to fulfil some other obligation; in bankruptcy or similar proceedings, the person who is the subject of the proceeding.

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Full Definition of Debtor


A debtor is an entity that owes a debt to another entity. The entity may be an individual, a firm, a government, a company or other legal person. The counter party is called a creditor. When the counterpart of this debt arrangement is a bank, the debtor is more often referred to as a borrower.


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Examples of Debtor in a sentence


In the early 1950’s the UK was the world’s largest debtor nation and the US the largest creditor.
It was clear that the debtor had not communicated with his accountant.
The debtor was summoned before the court for failure to pay.
He had been considering the option of charging a trust on the debtor.
There was no evidence that the debtor would have qualified financially for legal aid.
The court then issues a summons and serves it to the debtor, usually by post.
At the beginning of the 1990’s, the United States was the largest debtor nation in history.
After repeated but fruitless demands for payment, the company brought a suit against the debtor.
The bank officials argued that it is not within their remit to chase down every asset of every debtor.
The undesired impact of the new legislation was it relieved the debtor of all liability for their debts.
It creates a indisputable record which your debtor can not deny agreeing to.



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/debtor/
Modern Language Association (MLA):
Debtor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 21, 2019 https://payrollheaven.com/define/debtor/.
Chicago Manual of Style (CMS):
Debtor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/debtor/ (accessed: November 21, 2019).
American Psychological Association (APA):
Debtor. PayrollHeaven.com. Retrieved November 21, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/debtor/

Definition Sources


Definitions for Debtor are sourced/syndicated from:


This glossary post was last updated: 23rd December 2018.