ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A debtor is commonly known as a borrower, but when a company’s debt is in the form of securities, it is called an issuer. The relationship of a debtor is completed with the Creditor, where the Creditor is the entity to whom the debtor owes the money. For example, ‘A’ borrows money from the Bank.

Detailed explanation-2: -A debtor is an individual or entity that borrows money from another individual or entity and needs to pay that money back within a certain time frame, with interest. For example, a person who borrows money from a bank to buy a house is a debtor.

Detailed explanation-3: -Creditors are individuals/businesses that have lent funds to another company and are therefore owed money. By contrast, debtors are individuals/companies that have borrowed funds from a business and therefore owe money.

Detailed explanation-4: -A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities-such as bonds-the debtor is referred to as an issuer.

Detailed explanation-5: -In a secured transaction, the debtor is the borrower or buyer who puts up property as collateral for a loan or purchase which gives the creditor a security interest in the property. This means they have a right to take the property if the debtor does not pay off their obligations.