What is the meaning of debtor?

Author:
Harold Averkamp, CPA, MBA

Definition of Debtor

A debtor is a person, company, or other entity that owes money. In other words, the debtor has a debt or legal obligation to pay the amount owed.

Example of Debtor

If a company borrows $10,000 from a bank, the company is the debtor and the bank is the creditor.

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About the Author

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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