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Introduction to Debtor-Creditor Relationships

Borrowers and Lenders

A debtor-creditor relationship arises whenever one party owes money or another legal obligation to another party. These relationships are central to commercial lending, consumer credit, and business financing.

Tip
Every loan creates both a debtor and a creditor.
Summary
Debtor-creditor law establishes how debts are created, enforced, and resolved.