- Technically, a person who has filed a petition for relief under the bankruptcy laws. More generally, anyone who owes.
purchaser, borrower, risk taker
Related Terms and Acronyms
- Abandonment — Definition,
- A disclaimer of ownership by the trustee or debtor in property deemed burdensome or inconsequential. Once property has been "abandoned" it is no longer the property of the estate and creditors can seek to recover their money.
- Bankruptcy (BK) — Acronym, Important,
- A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
- Business Bankruptcy — Definition,
- A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
- Collection — Definition,
- The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.
- Creditor — Definition,
- One who is owed money.
- Garnishment — Definition,
- An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
- Mortgagor — Definition,
- The borrower in a mortgage transaction.
- Spread — Definition,
- The difference between the interest rate charged to borrowers and the interest rate paid to depositors.