Duties of a Debtor
Before we move on to the duties of a debtor in great detail, let's know who debtors are. A debtor is an individual or legal entity who owes money to another individual or entity. The party to whom the debt is payable (owed) is called the creditor . The money that the debtor owes is called the debt or obligation . Sometimes he may also be referred to as obligor and the creditor as obligee . How s/he becomes a debtor? An obligation usually arises from circumstances such as loans, credit extension, taxes, leases, medical bills, and tort claims for damages. Debts are often secured by collateral, such as a house or car, unless they are unsecured forms of debts like credit card debts, personal loans, advances, taxes, etc. In some cases, unsecured can become secured through various actions of law. We have already covered a blog on secured vs unsecured debts , just in case you want to go in detail. Particularly when enforce...