See Also: Indebtedness(finance)
INDEBTEDNESS(law)

INDEBTEDNESS (law)


INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 421. 2. But in order to create an indebtedness, there must be an actual 2. But in order to create an indebtedness, there must be an actual liability at the time, either to pay then or at a future time. If, for liability at the time, either to pay then or at a future time. If, for example, a person were to enter and become surety for another, who enters example, a person were to enter and become surety for another, who enters into a rule of reference, he does not thereby become a debtor to the into a rule of reference, he does not thereby become a debtor to the opposite party until the rendition of the judgment on the award. 1 Mass. opposite party until the rendition of the judgment on the award. 1 Mass. 134. See Creditor; Debt; Debtor. 134. See Creditor; Debt; Debtor.