Debtor

The debtor is the person who owes money. Most people assume that if your company is incorporated you cannot be held liable for debts. This is not completely true. You cannot escape taxes owed or monies owed to employees.

Another concern you can have with a corporation is the responsibility you assume for corporate decisions. You do have a fiduciary obligation to your shareholders. If you show poor judgment then you can be held liable.

Volunteer organizations can be affected as well. If you are a director or officer on a Board, then you can be held responsible for decisions made. If a judgment is made against you, then you could assume a debt.