debtor
noun
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Definition of debtor
Examples of debtor in a Sentence
Recent Examples on the Web
After five years, the lucky debtor will have paid $45,000 in interest payments alone, andâunder the 30% ruleâabout $20,000 in taxes and other costs. — Irina Ivanova, CBS News, "Americans still think they can make money flipping houses," 19 July 2019 Since then, there have been massive cuts to health care, pensions and education in order to repay debtors. — Andrew Boryga, sun-sentinel.com, "Floridaâs Puerto Ricans push for change, even beyond Gov. Ricardo RossellĂł's resignation," 25 July 2019 Second Avenue Capital and White Oak Commercial Finance is providing $13 million in debtor-in-possession financing to fund the company's operations through the latest bankruptcy. — Kate Gibson, CBS News, "Charming Charlie to close all 261 stores after 2nd bankruptcy in two years," 11 July 2019 Researchers at the Brookings Institution estimated last year that as many as 40% of the approximately 44 million student debtors in the United States could default by 2023. — Robert Gebelhoff, Twin Cities, "Robert Gebelhoff: Yes, I want to pay off my student loans," 30 June 2019 Researchers at the Brookings Institution estimated last year that as many as 40% of the approximately 44 million student debtors in the United States could default by 2023. — Robert Gebelhoff, The Denver Post, "Commentary: Yes, I want to pay off my student loans, but these relief plans arenât serious," 26 June 2019 Some debtors, meanwhile, have already started to pushback against China's aggressive lending schemes. — Eamon Barrett, Fortune, "Taking Credit From China â CEO Daily," 13 July 2019 That hurts creditors and benefits debtors, who see the real value of their obligations shrink. — The Economist, "Should egalitarians fear low interest rates?," 11 July 2019 State entities served as owners, managers, debtors and creditors. — The Economist, "The Big Four may be blocked from doing Indian audits for years to come," 28 June 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'debtor.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for debtor
debtor
nounFinancial Definition of debtor
What It Is
A debtor is a person or entity legally required to provide a payment, service or other benefit to another person or entity (the obligee). Debtors are often also called borrowers or obligors in contracts.
How It Works
Companies that issue bonds are perhaps the most well-known debtors. They must provide their bondholders with set interest and principal payments on specified dates and in some cases must be willing to convert that debt into equity at specified ratios or repay the debt early if certain events occur.
However, a debtor also might be required to perform particular tasks or even refrain from performing certain actions. When a debtor fails to meet its obligations, the debtor is sometimes considered in default.
Why It Matters
Debtors are subject to contractual obligations. As such, if they do not fulfill their obligations, the creditors usually have the right to seek recourse in court. A significant amount of reputational damage can also occur when an entity, especially a public company, fails to meet its obligations. In some cases, even the speculation that a debtor might not fulfill its obligations can cause its stock price to go down and make it very difficult to obtain financing or other help later.
Source: Investing Answers
debtor
noun
English Language Learners Definition of debtor
See the full definition for debtor in the English Language Learners Dictionary
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Kids Definition of debtor
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