Definition - What does Absconding Debtor mean?
An absconding debtor is a person who attempts to avoid repaying a debt by disappearing or by attempting to run away from his or her creditors. He or she may do this by moving to a different state, to a different town or even to a different country. Not paying a debt is a cause of action and absconding debtors can be sued for it.
Justipedia explains Absconding Debtor
Absconding debtors can create a real problem for creditors. If a debtor is constantly running away while a creditor tries to track him or her down, then it can be very difficult for the creditor to be repaid for the debt. For this reason, creditors often seek permission or assistance from the court to try to get repayment in other ways. For example, the court may allow the creditor to see if any property is owned in the name of the absconding debtor. If there is, then it may be able to be seized in order to repay the debt.
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