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What is the distinction between debtor and creditor?
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A debtor is someone (or a party) who owes money to another person (or another party). In this case you can think of a party as being for example a bank or any other financial institution like credit unions.
If i for example i borrow money from my friend , I'm a debtor to my friend.
A creditor on the other hand, is a person or a bank that has lent money to another person. If for example i borrow money from a bank, the bank is a creditor.
or if i borrow money from my friend, my friend is a creditor and I'm a debtor.
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