Debtor: meaning, definitions and examples

This entry is a duplicate and should be omitted.

Use 'borrower' to talk about someone who has taken money, property, or goods on loan with the intent to return it or its equivalent. The focus is more on the act of borrowing rather than the inability to repay.

• The borrower must provide proof of income to qualify for the loan.
• Libraries have policies to ensure that borrowers return books on time.

Use 'obligor' to describe someone who is legally bound to provide a payment or service to another person under a contract or legal duty. This term is more formal and often used in legal and financial documents.

• The obligor is required to fulfill all duties outlined in the contract.
• In a surety bond agreement, the contractor is the obligor.

Use 'mortgagor' when referring to an individual or entity that takes out a mortgage loan secured by real estate. This term is most suitable in real estate and banking scenarios.

• The mortgagor agreed to the terms set forth by the bank to secure the property.
• As a mortgagor, he is responsible for making monthly mortgage payments to the lender.

Use when referring to someone who owes money, regardless of whether they're currently paying back or have defaulted, in formal and financial contexts.

• The company decided to take legal action against the debtor.
• As a debtor, she had to ensure timely payments.

Use when referring to someone to whom another person owes an obligation or duty, in legal and financial contexts. This term is often used more in contracts and formal agreements.

• The obligee has the right to demand timely repayment.
• According to the agreement, the obligee must be compensated.

Use when referring to someone who owes money in a more general sense. This term can be used in both formal and informal contexts.

• She offered help to the indebted person with managing their finances.
• An indebted person might face difficulties securing new loans.

Use when referring to someone who has failed to pay their debt on time, typically used in formal and legal contexts. This term has a negative connotation.

• The defaulter was issued a court notice after missing multiple payments.
• Defaulters will face penalties according to the contract terms.