A debtor is an individual, business, or entity that owes a financial obligation to another party. This arises when the debtor has received money, goods, or services from the other party and is now bound to repay or return them. The debtor is the recipient of a loan or credit arrangement, creating a legal responsibility to settle the owed amount according to the terms agreed upon.
Whether it’s a person with a personal loan, a company with outstanding invoices, or a government with borrowed funds, the debtor has an obligation to honor their commitment and make the necessary payments to the creditor.
