Arrears Legal Meaning and Definition

Here is a simplified definition of the legal term Arrears.

Arrears (noun)

Arrears is a term used to describe the situation when an individual or company owes money, such as salary or rent, that was supposed to be paid at an earlier date but remained unpaid. This can result due to an obligation or regular service, forming a kind of liability. They typically refer to past due amounts rather than current or future amounts.