What Is a Debtor? And How Is It Different Than a Creditor?

Today, we will talk about what a debtor is and how it is different from a creditor. A debtor is an individual or company that owes money, whether to banks, financial institutions, or other individuals or companies. Debtors may be referred to as borrowers when the debt is to a bank or financial institution, and as issuers when the debt is in the form of securities. Debtors cannot go to jail for unpaid consumer debts, but courts can send them to jail for unpaid taxes or child support. Creditors may have other recourse, such as repossession or taking debtors to court for garnishments.
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