A debtor is someone who has borrowed money or received goods or services on credit and is obligated to repay the amount owed. Learn about the legal relationship, rights, obligations, and challenges of debtors in finance and accounting. A debtor is a person or business that owes money to a creditor. Learn about debtors ' rights, penalties, and how they differ from creditors in this article. Except in certain bankruptcy situations, debtors can choose to pay debts in any priority they choose. But if one fails to pay a debt, they have broken a contract or agreement between them and a creditor. debtor in American English (ˈdetər) noun a person who is in debt or under financial obligation to another (opposed to creditor)
