Debt Definition: An amount of money due and payable, from one person to another. Related Terms: Abatement, Debtor, Creditor The obligation to pay a certain amount of money to another person as a result of a contract or other legal obligation (such as damages resulting from a tort). The obligation must be due for it to be a debt. Forthcoming rent, for example, is not yet a debt, nor are prospective damages not yet determined by judgment of a court. This distinction can be important as once a money obligation becomes due and payable (a debt), it may be exposed to garnishment. A person with a debt to another is called a debtor. The person to whom the money is owed, his creditor. A person who is "debt free" has no creditors; owes money to no other person. A debt can be guaranteed or secured by a guarantee, indemnity or mortgage. A debt is canceled by payment of the full amount owing to the creditor. Categories & Topics: Bankruptcy Law Dictionary Contract Law Dictionary Find you are constantly looking up definitions? Try our search provider (works in most modern browsers) If you find an error or omission in Duhaime's Legal Dictionary, or if you have legal term suggestion, we'd love to hear from you!