Debtors are companies or individuals who owe money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer. The term "debtor" can also be used more generally to refer to anyone who owes something, such as a creditor or supplier.Debts can arise for many reasons: from buying goods on credit, borrowing money for business purposes, or failing to pay taxes on time. Whatever the reason may be, it's important for both debtors and creditors alike to understand their rights and responsibilities under law.For debtors, this includes understanding what types of debts they have (secured or unsecured), how much interest they're paying on those debts, whether any penalties apply for late payments etc. They should also make sure they keep good records of all transactions related to their debts so that they can accurately track their progress in repaying them over time.Creditors have certain rights too under law including being able to take legal action against debtors if payments are not made on time etc., but they must also act within these bounds otherwise they may find themselves open to legal challenges from borrowers themselves.
