Debt Legal Meaning and Definition

Here is a simplified definition of the legal term Debt.

Debt (noun)

A legal term describing the amount of money, goods, services, or duties that one party owes to another due to a previous agreement or legal obligation. This obligation can take several forms such as a bond, a mortgage, or a promissory note. The party who owes is called a 'debtor' and the party to whom it is owed is known as a 'creditor'.