are debtors income 
debtors aren t considered to be income the money owed by debtors to creditors isn t recorded as income but rather as an asset such as a note or an account receivable any interest or fees charged by the creditor are recorded as income for the creditor however and they re reported as an expense for the debtor the bottom linedebtors owe money to individuals or companies such as banks they can be individuals or companies and are referred to as borrowers if the debt is from a bank or a financial institution debtors can also be someone who files a voluntary petition to declare bankruptcy debtors can t go to jail for unpaid consumer debts debt collectors can t threaten debtors with jail time but courts can put debtors in jail for unpaid child support in some cases 