The state of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. Jur. 343; 2 Hill, Abr. 421. The word implies an absolute or complete liability. A contingent liability, such as that of a surety before the principal has made default, does not constitute indebtedness. On the other hand, the money need not be immediately payable. Obligations yet to become due constitute indebtedness, as well as those already due. St. Louis Perpetual Ins. Co. v. Goodfellow, 9 Mo. 149.
Link to This DefinitionDid you find this definition of INDEBTEDNESS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary