debtor

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Debtor

One who owes a debt or the performance of an obligation to another, who is called the creditor; one who may be compelled to pay a claim or demand; anyone liable on a claim, whether due or to become due. In Bankruptcy law, a person who files a voluntary petition or person against whom an involuntary petition is filed. A person or municipality concerning which a bankruptcy case has been commenced.

debtor

n. 1) a person or entity that owes an amount of money or favor to another. 2) in bankruptcy, the party whose affairs are the subject of the proceedings is called the "debtor." (See: bankruptcy)

debtor

someone who owes a debt to a CREDITOR.

DEBTOR, contracts. One who owes a debt; he who may be constrained to pay what he owes.
     2. A debtor is bound to pay his debt personally, and all the estate he possesses or may acquire, is also liable for his debt.
     3. Debtors are joint or several; joint, when they all equally owe the debt in solido; in this case if a suit should be necessary to recover the debt, all the debtors must be sued together or, when some are dead, the survivors must be sued, but each is bound for the whole debt, having a right to contribution from the others; they are several, when each promises severally to pay the whole debt; and obligations are generally binding on both or all debtors jointly and severally. When they are severally bound each may be sued separately, and on the payment of debt by one, the others will be bound to contribution, where all had participated in the money or property, which was the cause of the debt.
     4. Debtors are also principal and surety; the principal debtor is bound as between him and his surety to pay the whole debt. and if the surety pay it, he will be entitled to recover against the principal. Vide Bouv. Inst. Index, h.t.; Vin. Ab. Creditor and Debtor; Id. Debt; 8 Com. Dig. 288; Dig. 50, 16, 108 Id. 50, 16, 178, 3; Toull. liv. 2, n. 250.

References in periodicals archive ?
G&H Custom Craft, Inc., stated that it would apply the ordinary course of business defense to payments outside the range of payments included in the payment history between the debtor and creditor as long as the payments did not exceed the outer limits (i.e., the earliest and latest payment) by more than 10 percent.
The liquidator has the following powers and duties: (1) sue and recover assets of debtor; (2) take possession of all properties of debtor; (3) sell, with court's approval, any property of the debtor under his possession or control; (4) redeem all mortgages, pledges, and satisfy judgment that may constitute an encumbrance on any property sold by him; (5) settle accounts between debtor and creditors with approval of court; (6) recover property fraudulently conveyed by debtor; (7) recommend the creation of creditor's committee; and (8) engage the services of persons with specialized skills or training necessary to assist him.
Alternatives such as a nonstatutory contract to which both debtor and creditors consent give creditors a prorated share of their claims and discharge the debtor's balance.
In instances where serious negotiations occurred prepetition between the municipal debtor and creditors holding sufficient debt, courts have found the municipality to have satisfied the requirement.
A composition agreement must be in writing and fully state the terms under which the debtor and creditors will be bound.
Sophisticated committee members bring a business context to the negotiation process between the debtor and creditors. It is important to have members with knowledge about the industry in order to judge whether the debtor's plans are prudent.
The debtor and creditors have a period of 10 days to file any comments on the general report, All comments are appended to the report, without consideration, and are filed with the court.
Yet, the approval of a plan and disclosure statement normally takes several months of time with negotiations and sometimes litigation between the debtor and creditors before confirmation.