Akademik

debt n [Old French dette, ultimately from Latin debita, plural of debitum debt, from neuter of debitus, past participle of debere to owe]

1: something owed: as

a: a specific sum of money or a performance due another esp. by agreement (as a loan agreement)

to pay the debt s...of the United States — U.S. Constitution art. I

b: an obligation to pay or perform on another's claim

discharged the debt compare asset, equity 4

◇ It is often up to the courts to decide what is or is not a debt under various laws. Courts disagree whether criminal restitution is a debt under the Bankruptcy Code. The historical practice of imprisoning debtors for nonpayment is no longer used.

antecedent debt: debt that is incurred prior to a property transfer paying or securing the debt compare preference

bad debt: a debt that cannot be collected

◇ An income tax deduction is allowed for bad debts.

consumer debt: debt that is incurred by an individual primarily for the purchase of consumer goods or services compare consumer credit

judgment debt: a debt established by a judgment and enforceable by a legal process (as an execution of judgment or attachment)

c: a state of owing

d: the aggregate of money owed

2: the common-law action for the recovery of a specified sum of money or a sum that can be simply and certainly determined – called also action of debt, writ of debt; compare assumpsit, covenant