debtor
DET-er
/ˈdɛtər/
A person or institution that owes a sum of money.
The entity (person or institution) that has received a loan or extended credit and is obligated to repay it. They are the 'borrower' in a financial transaction.
The story behind the word. Like 'debt,' 'debtor' traces its roots back to the Latin 'debitorem,' the agent noun of 'debere,' meaning 'to owe.' It literally means 'one who owes.' The 'b' was reinserted into the English spelling in the 16th century to reflect this Latin origin, just as with 'debt,' though it also remains silent.
Word relationships
- borrower: More general term for someone who borrows money; 'debtor' is often used in a more formal or legal context.
- obligor: A person who is bound to another by a legal or moral obligation.
- creditor: A person or entity to whom money is owed.
Commonly confused with
- creditor: A 'debtor' owes money; a 'creditor' is owed money.
Word family
- debt (noun): A sum of money that is owed or due.
- indebted (adjective): Owing money or gratitude.
Collocations
- major debtor
- consumer debtor
- corporate debtor
- debtor's prison (historical)
Example sentences
- "The court ruled that the debtor was legally bound to repay the outstanding amount." In a legal dispute.
- "The company, now a major debtor, sought protection under bankruptcy laws." A company facing financial difficulties.
- "The analysis showed a significant increase in consumer debtors, indicating rising household debt." From a financial analyst's report.
Memory hook
A 'debtor' has a 'debt' to pay. Debt to pay
When not to use
Do not use 'debtor' to refer to someone who is owed money; that is a 'creditor.'
Fun facts
- Historically, 'debtor's prisons' existed where people who couldn't pay their debts were incarcerated. Charles Dickens' father was once sent to a debtor's prison, which influenced his writing.
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