What Is Voluntary Debtor Creditor Relationship

An example of a voluntary debtor-creditor relationship is when a consumer enters into a loan. … The consumer then becomes the debtor and the lending institution is the creditor.

What is a creditor relationship?

debtor and creditor, relationship existing between two persons in which one, the debtor, can be compelled to furnish services, money, or goods to the other, the creditor. … Sometimes it is possible to attach the debtor’s property, wages, or bank account as a means of forcing payments (see garnishment).

What is a debtor relationship?

A debtor is the opposite of a creditor – it refers to the person or entity who owes money. Once a creditor has delivered the goods/service, the payment is expected at a later date, which is typically agreed upon beforehand. The debtor-creditor relationship is complementary to the customer-supplier relationship.