In the civil law debt designates the obligation for the contribution of an achievement. From civil view this term is worth neutral. It designates received obligations: thus the salesman of a thing owes their delivery and transfer of title, the buyer in response their payment.

The legal term of the debt comes of the old Roman obligation right, which covered obligations ("“obligatio"”). Eingedeutscht became however the term debt. Thus the second book of the BGB, which concerns itself with entering and fulfilment of obligations, carries the heading right of the obligations. In Switzerland however this right area obligation right is called.

Outside of this strict legal terminology debt the payment of a money is named, which one lent oneself before (loans or credit). The debtor, who takes a credit up, owes the creditor the repayment of the amount, which becomes thereby the demand. Debtor can be a private person just like a private business or the state (national debt). The regular repayment is called debt service.

In the enterprise: The debts consist of the entire outside capital working in the enterprise. They are arranged after their maturity (= urgency of the repayment). Long-term debts stand therefore above.

Of insolvency one speaks, if the debts of the applicant for the credit exceed its sellable fortune and/or seizable income. With a natural person it is given, if its liabilities cannot presumably be erased by sale of its usable fortune (execution) and by wage and/or in the following 6 years. In such a situation the possibility exists of requesting an insolvency procedure with a judicial payment retirement (debt release) after six years a lasting trust time ("“good behavior period"”). Attorneys or nationallegally recognized insolvency advisory boards (debtor consultation or Resolvenzberatung) offer assistance.

The insolvency of enterprises can give cause for closing downs, fusion (economics), trust, concentration of enterprise and assumptions.

The fact that debts must be usually paid interest on, can represent to case of debt, if despite regular payment the debts can be not substantially diminished. Into earlier times continuous debtor came in this way in debt farmhand shank, body characteristic or slavery. In some countries are debts hereditary, so that whole families are held over several generations away in body characteristic and/or slavery.

Critics mean, which is north south prosperity downward gradient in it justified that the poorer states are in an obligation to the richer and despite constant achievements (e.g. by supply of agricultural products) the case of debt not to escape not to be able. Aggravatingly it is added that also the possibility of intensified export remains locked for them, because the industrial nations limit the imported goods to agricultural products (e.g. the European Union on banana imported goods),

When among other things Argentina stated example of a in such a way exploited state, which 1976 had a national debt of approximately 8 billion USD, up to the year 2001 about 200 billion USD at debt service carried out and afterwards still debts at a value of 160 billion USD had.

Quotation

"“You want to recognize the value of the money, try, to borrow to you which."” - Benjamin Franklin

See also

• Financing
• Financing
• Banks
• Insolvency
• Debitism
• Financial scandal

Related links

• On-line councellor of the Federal Association of Labor debtor consultation and the Federal Ministry for family
• "“Which I make with my - Brochure of the Federal Ministry for family
• Information for indebted ones and debtor advisors of the forum debtor consultation
• Information for indebted ones and debtor advisors
• Link collection of the debtor technical consultation center at the Johannes good mountain university Mainz

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