Debtor Legal Meaning and Definition

Here is a simplified definition of the legal term Debtor.

Debtor (noun)

A debtor is an entity or individual who owes money to another party, often called the creditor. A debtor can either be a person or a business. In a legal context, if a person or company declares bankruptcy, they are also referred to as the debtor. The debts may arise from transactions like loans, service agreements, or goods purchased on credit.