indebted

Indebted is an adjective meaning owing money or other obligations to someone else. It can also describe a state of moral or social obligation, such as being indebted to a benefactor for past help. The term is commonly used in financial contexts but appears in everyday language as well.

In finance, indebtedness refers to the total amount owed by a person, company, or government. Debts may be secured by collateral or unsecured, and may bear interest. Debts can be short-term or long-term, with repayment terms and covenants that influence credit risk. Persistent indebtedness can lead to default, restructuring, or bankruptcy.

Etymology: Indebted derives from debt with the prefix in- and the participial suffix -ed. It has been in use in English since the medieval period to express a state of owing something to another.

Usage notes: The phrase "indebted to" is common in formal and literary style when acknowledging gratitude or obligation. In accounting and law, indebtedness is a formal liability recorded on balance sheets and may be subject to financial reporting standards.

Related terms include debt, indebtedness, liability, bankruptcy, and debt relief.