Who is classified as a debtor?

A debtor is defined as an individual or entity that has borrowed money or taken on a financial obligation and has not yet repaid it. This typically means that they owe money to another party, such as a lender or a creditor. Being a debtor can arise from taking out loans, using credit cards, or other forms of borrowing.

In contrast, the other options describe financial situations that do not fit the definition of a debtor. For instance, a person who is financially independent has managed their finances well enough to avoid borrowing or being in debt. Similarly, a person who has paid off all their debts is no longer classified as a debtor because they have fulfilled their financial obligations. Lastly, a person who works to earn money does not necessarily owe anything; their employment status does not indicate whether they are in debt or not. Thus, the classification of a debtor specifically pertains to someone who currently owes money.