Legal Definitions - absconding debtor

An absconding debtor is someone who owes money to another person or entity but has fled to avoid paying their debt. This type of debtor is also known as a fugitive debtor. Absconding debtors are often difficult to locate and serve with legal papers because they have intentionally disappeared.

For example, if someone borrows money from a bank and then leaves the country without repaying the loan, they would be considered an absconding debtor. Another example would be if a person runs up a largecredit card debt and then moves to a different state without notifying the credit card company.

Absconding debtors can cause significant financial losses for creditors, who may have to spend time and money trying to locate them and recover the debt. In some cases, absconding debtors may be pursued by debt collection agencies or even law enforcement.