DEBTOR

debtor.  1.  One  who  owes  an  obligation  to  another,  esp.  an  obligation  to  pay  money.

2.Bankruptcy. A person who files a voluntary petition or against whom an involuntary petition is

filed — Also termed bankrupt. [Cases: Bankruptcy    2221. C.J.S. Bankruptcy § 45.]

“Section  101  [of  the  Bankruptcy  Code]  also  introduces  us  to  the  language  of  modern

bankruptcy practice. It tells us, for instance, that the person whom a bankruptcy case concerns is a

debtor. A person or a firm in bankruptcy is no longer called a bankrupt. Although that word retains

some  currency  among  lay  people,  among  bankruptcy  lawyers  it  sounds  old-fashioned  and

precious.” Douglas G. Baird, Elements of Bankruptcy 6 (2001).

3.Secured  transactions.  A  person  who  either  (1)  has  a  property  interest  —  other  than  a

security interest or other lien — in collateral, even if the person is not an obligor, or (2) is a seller

of  accounts,  chattel  paper,  payment  intangibles,  or  promissory  notes.  UCC  §  9-102(a)(28).  —

Abbr. Dr. [Cases: Secured Transactions    12, 21. C.J.S. Secured Transactions §§ 7, 10, 12, 19, 36.]

absent debtor.A debtor who lacks the intent to defraud creditors but is beyond the geographic

reach of ordinary service of process.

absconding  debtor.A  debtor  who  flees  from  creditors  to  avoid  having  to  pay  a  debt.  •

Absconding   from  a   debt  was   formerly  considered   an  act  of  bankruptcy.   See   ACT  OF

account debtor.A person obligated  on an account, chattel paper, or general intangible. • The

UCC  exempts  from  the  definition  of  account  debtor  a  person  obligated  to  pay  a  negotiable

instrument, even if the instrument constitutes chattel paper. UCC § 9-102(a)(3).

common  debtor.Scots  law.  A  debtor  whose  property  has  been  arrested  by  more  than  one

concealed  debtor.A  debtor  who  hides  from  creditors,  usu.  with  the  intent  to  defraud  the

creditors or to avoid service of process, but does not leave the community or move out of state.

joint debtor.One of two or more debtors jointly liable for the same debt.

judgment debtor.See JUDGMENT DEBTOR.

new  debtor.Secured  transactions.  A  person  who  becomes  bound  as  debtor  under  a  security

agreement previously entered into by another person. UCC §§ 9-102(a)(56), 9-203(e).

solvent debtor.A debtor who owns enough property to cover all outstanding debts and against