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Bankruptcy - What is a Debtor?A Debtor is the person, organization or other entity that has borrowed money, property or services from another party. The party that has provided the money, property or services is known as a Creditor. In the case of a bankruptcy, the Debtor may be an individual who has borrowed money from a Creditor (Such as a bank) to purchase a home. If you are the one that owes the money, then you are the Debtor. Example: If an individual borrows money from Bank “A” to purchase a home, the individual becomes the Debtor and Bank “A” becomes the Creditor. When a Debtor (also known as a borrower) borrows money from a Creditor (Such as a Bank), there is typically a contract that is signed promising to return the money. The description above is not a comprehensive legal definition but rather an informal description of the term debtor, and how it may be used in a case involving bankruptcy. |
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