Book of Zakat

Rulings on Debts

أَحْكَامِ الدَّيْنِ

Glossary

The Rulings on Debt (Dayn) ⁸⁵⁴

One who is liable for a debt with a deferred due date:
1. Is not required to pay it off before its due date. ⁸⁵⁵
2. Is not to be interdicted (ḥajr) ⁸⁵⁶ for the sake of the debt, and;
3. The debt does not become due if the debtor is declared bankrupt, nor will it be due if he or she dies, as long as the heirs guaranteed it with a security (rahn) or a guarantor of appearance (kafeel). ⁸⁵⁷ If the debtor embarks on a

: مَنْ لَزِمَهُ دَيْنٌ مُؤَجَّلٌ
١.لَمْ يُطَالَبْ بِهِ قَبْلَ أَجَلِهِ،
.٢.وَلَمْ يُحْجَرْ عَلَيْهِ مِنْ أَجْلِهِ،
.٣.وَلَمْ يَحِلَّ بِفَلَسِهِ، وَلاَ بِمَوْتِهِ، إِذَا وَثَّقَهُ الْوَرَثَةُ بِرَهْنٍ، أَوْ كَفِيْلٍ
وإِنْ أَرَادَ سَفَرًا يَحِلُّ الدَّيْنُ قَبْلَ مُدَّتِهِ، أَوِ الْغَزْوَ تَطَوُّعًا، فَلِغَرِيْمِهِ مَنْعُهُ، إِلاَّ أَنْ يُوَثِّـقَهُ بِذٰلِكَ.

854. This chapter addresses debts (liabilities) resulting from loans and all other transactions, such as deferred payment sales and deferred ṣadâq (dower/dowry, i.e., the gift or payment which the groom promises to give to the bride). I will use the term ‘creditor’ rather than ‘lender’ when I refer to the one who is owed money.

855. This is in reference to any due liabilities other than the debts resulting from loans, such as a deferred ṣadâq or a price of a purchased commodity. (A) + (+H, +M, +S)
See the previous chapter for the controversy over deferment of the due date for debts resulting from loans.

856. Interdiction means to place the debtor’s property under legal seizure and prevent him or her from disposing of it.

857. There is another narration from Aḥmad stating that it would be due in the case of death because there will be harm to the deceased (in terms of the person’s afterlife) if the heirs and creditors defer it.

journey that will last past the due date, or volunteers for a military expedition, his creditor has the right to stop him (or her) unless the debtor guarantees the payment with that [security (rahn) or a guarantor of appearance (kafeel)]. ⁸⁵⁸

In the case of insolvency at the time of payment, the debtor is granted a respite. ⁸⁵⁹ If the debtor alleges insolvency, he or

وَإِنْ كَانَ حَالاًّ عَلَى مُعْسِرٍ، وَجَبَ إِنْظَارُهُ. وَإِنِ ادَّعَى الإِعْسَارَ، حُلِّفَ، وَخُلِّيَ سَبِيْلُهُ، إِلاَّ أَنْ يُعْرَفَ لَهُ

858. This means that if the journey does not last past the due date, the creditor may not prevent the debtor from travel. This is the weaker of the two positions within the Ḥanbali madh-hab. In the stronger position, the creditor has the right to ask for a security (rahn) or guarantor of appearance (kafeel) before the departure of the debtor, particularly if the journey is long or risky.

859. Allah said:

{And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.} (al-Baqarah 2: 280)

وَإِن كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍ وَأَن تَصَدَّقُوا خَيْرٌ لَّكُمْ إِن كُنتُمْ تَعْلَمُونَ

she is to make an oath and be released, ⁸⁶⁰ unless it is known beforehand that the debtor has wealth, in which case the claim will not be accepted without evidence.

مَالٌ قَبْلَ ذٰلِكَ، فَلاَ يُقْبَلُ قَوْلُهُ، إِلاَّ بِبَيِّنَةٍ

If the debtor is solvent, he or she has to make the due payment, but if the debtor refuses, he or she is to be jailed until full payment of the debt. ⁸⁶¹

وَإِنْ كَانَ مُوْسِرًا، لَزِمَهُ وَفَاؤُهُ، فَإِنْ أَبَى، حُبِسَ حَتَّى يُوَفِّيَهُ

If the debtor’s wealth is not enough to pay the debt fully, and his or her creditors have asked the judge to interdict him or her, ⁸⁶² the judge has to consent to their request.

فَإِنْ كَانَ مَالُهُ لاَ يَفِيْ بِدَيْنِهِ كُلِّهِ، فَسَأَلَ غُرَمَاؤُهُ الْحَاكِمَ الْحَجْرَ عَلَيْهِ، لَزِمَهُ إِجَابَتُهُمْ

860. If it is known that the debtor is insolvent, then there is no reason to imprison him or her, because imprisonment is warranted only when collecting a debt from a solvent person, or to confirm his or her insolvency. A solvent debtor is not likely to prefer imprisonment over paying back the creditors.

861. The Messenger of Allah (SA) said:

“The procrastination of the solvent makes their reputation violable (that is, one may complain against them) and warrants their punishment.” (D – from ‘Amr ibn ash-Shareed, from his father; Ibn Ḥajar: S)

لَيُّ الْوَاجِدِ يُحِلُّ عِرْضَهُ وَعُقُوبَتَهُ

862. Place the debtor’s property under legal seizure and prevent him or her from disposing of it.

In that case, the debtor is not permitted to dispose of his or her money, ⁸⁶³ and his or her legal declarations regarding it ⁸⁶⁴ are not accepted.

فَإِذَا حَجَرَ عَلَيْهِ، لَمْ يَجُزْ تَصَرُّفُهُ فِيْ مَالِهِ، وَلَمْ يُقْبَلْ إِقْرَارُهُ عَلَيْهِ

The judge takes charge of paying the person’s debts.
• He starts by paying compensation for a crime committed by the debtor’s slave; he would pay to the victim the least of two: either compensation or the value of the perpetrator.
• Then the judge would pay the creditor who has a security ⁸⁶⁵ (rahn) whichever is the least, either the debt or the value of the security. As for the rest of the loan, the creditor will be

وَيَتَوَلَّى الْحَاكِمُ قَضَاءَ دَيْنِهِ
• وَيَبْدَأُ بِمَنْ لَهُ أَرْشُ جِنَايَةٍ مِنْ رَقِيْقِهِ فَيَدْفَعُ إِلَى الْمَجْنِيِّ عَلَيْهِ أَقَلَّ الأَمْرَيْنِ مِنْ أَرْشِهَا أَوْ قِيْمَةِ الْجَانِيْ • ثُمَّ بِمَنْ لَهُ رَهْنٌ، فَيَدْفَعُ إِلَيْهِ أَقَلَّ الأَمْرَيْنِ مِنْ دَيْنِهِ أَوْ ثَمَنِ رَهْنِهِ، وَلَهُ أُسْوَةُ الْغُرَمَاءِ فِيْ بَقِيَّةِ دَيْنِهِ
• ثُمَّ مَنْ وَجَدَ مَتَاعَهُ الَّذِيْ بَاعَهُ [1-] بِعَيْنِهِ [2-] لَمْ يَتْلَفْ بَعْضُهُ [3-] وَلَمْ يَزِدْ زِيَادَةً مُتَّصِلَةً [4-] وَلَمْ يَأْخُذْ مِنْ ثَمَنِهِ شَيْئًا،

863. Because this money will be used by the judge to pay the person’s debts.

864. So that the debtor cannot claim to owe a debt to someone who does not have proof of that. This is to guard against forgery, where the debtor arranges with someone to claim that he or she owed the creditor money, and when the judge pays that fake creditor, they divide the money as agreed.

865. That is, the judge will collect the security back from the creditor, add it to the interdicted wealth of the debtor, and pay the creditor whichever is the least, either the debt or the value of the security.

treated like the rest of the creditors. ⁸⁶⁶ • When someone [who sold something to the now bankrupt debtor and never received payment] finds [with that debtor] his or her [1] very same property which he or she sold, [2] safe and sound, and [3] it did not appreciate in a way inseparable from the original capital, ⁸⁶⁷ and [4] the creditor had not received any payment at all, it is the creditor’s right to take it. ⁸⁶⁸ The Prophet (SA)

فَلَهُ أَخْذُهُ. لِقَوْلِ النبي :" مَنْ أَدْرَكَ مَتَاعَهُ بِعَيْنِهِ عِنْدَ إِنْسَانٍ قَدْ أَفْلَسَ، فَهُوَ أَحَقُّ بِهِ مِنْ غَيْرِهِ."
• وَيُقَسَّمُ الْبَاقِيْ بَيْنَ الْغُرَمَاءِ عَلَى قَدْرِ دُيُوْنِهِمْ

866. If the security the creditor has is less than the loan, he or she will be treated like the rest of the creditors regarding the difference. So if the creditor is entitled to $100 and the security was valued at $70, he or she will take $70 and then be entitled to the remaining $30 (if the remaining funds permit). So if each one of the creditors gets 80% of their entitlements, this particular creditor will get $24 out of that $30.

867. That is like a cow gaining weight. The increase here cannot be separated from the capital.

868. (A) + (+M, +S)

In addition to the conditions mentioned here (for a creditor to be more entitled to his or her property that was found in the possession of the debtor), there is another condition according to (A/SM): the debtor must be alive, because the Prophet (SA) said:

“If he or she (the debtor) has died, then the owner of the found property shall be treated like the rest of the creditors.” (D – from Abu Hurayrah)

وَإِنْ مَاتَ الْمُشْتَرِي فَصَاحِبُ الْمَتَاعِ أُسْوَةُ الْغُرَمَاءِ

said, “If a creditor finds the exact property with a bankrupt [debtor], he or she has more right to it than anyone else.” ⁸⁶⁹
• The remainder is to be divided among the creditors in proportion to their loans. ⁸⁷⁰

The expenses of the bankrupt debtor and his or her dependents are to be paid from the debtor’s money until

وَيُنْفَقُ عَلَى الْمُفْلِسِ وَعَلَى مَنْ تَلْزَمُهُ مُؤْنَتُهُ مِنْ مَالِهِ إِلَى أَنْ يُقْسَمَ

869. (Ag – from Abu Hurayrah)

870. They shall not be entitled to more than what they find in the debtor’s possession at the time of his or her bankruptcy.

“A man incurred a huge loss in a deal of fruits he bought during the time of the Messenger of Allah (SA), so his debt became very large. The Messenger of Allah (SA) ordered: Donate to him. The people did, but it still did not cover his debts, so the Messenger of Allah (SA) said [to his creditors]: Take what you find, and you are not entitled to anything else.” (M – from Abu Sa‘eed al-Khudri)

أُصِيبَ رَجُلٌ في عَهْدِ رسول اللَّهِ صلى الله عليه وسلم في ثِمَارٍ ابتاعها فَكَثُرَ دَيْنُهُ فقال رسول اللَّهِ صلى الله عليه وسلم تَصَدَّقُوا عليه فَتَصَدَّقَ الناس عليه فلم يَبْلُغْ ذلك وَفَاءَ دَيْنِهِ فقال رسول اللَّهِ صلى الله عليه وسلم خُذُوا ما وَجَدْتُمْ وَلَيْسَ لَكُمْ إلا ذلك

Note: if the debtor later acquired wealth, the creditors will be entitled to their rights. (A) + (+H, +M, +S)

distribution [of the debtor’s money amongst the creditors] is over. ⁸⁷¹

If [the bankrupt debtor] was found, by the testimony of one witness, to be entitled to some property, and he or she refused to make an oath [to acquire it], his creditors are not allowed to make an oath. ⁸⁷²

وَإِنْ وَجَبَ لَهُ حَقٌّ بِشَاهِدٍ فَأَبَى أَنْ يَحْلِفَ، لَمْ يَكُنْ لِغُرَمَائِهِ أَنْ يَحْلِفُوْا

871. This is when the debtor’s earnings after the interdiction are not sufficient for the sustenance of his or her family. In this case, the deficit is covered from the seized money until it is distributed amongst the creditors. This is because the Messenger of Allah (SA) said, concerning spending:

“Start with yourself.” (M – from Jâbir)

ابْدَأْ بِنَفْسِك

872. If the debtor is entitled to some money, and there is only one witness to this, then he or she may take an oath, in addition to the one witness, and the money will be transferred to him or her. However, in this case, it will be also under legal seizure, and the creditors will be entitled to it. If the debtor refuses to take an oath, he or she cannot be forced to take it, and his or her creditors cannot take an oath that the money belongs to the debtor.

Rulings on Debts

( Page : no 77)

Book of Zakat

Rulings on Debts

أَحْكَامِ الدَّيْنِ

Introduction

The Book of Purification

The Book of Prayer

The Book of Funerals

The Book of Fasting

The Book of Hajj and 'Umrah

Book of Zakat

The Book of Selling and Commercial Transactions

The Book of Bequests

The Book of Inheritance

The Book of Marriage

The Book of Divorce

The Book of Sadaq

The Book of Dhihar

The Book of Lian

The Book of Foods

The Book of Oaths

Book of Fatal and Non-Fatal Assault

The Book of Indemnities

The Book of Hudood

The Book of Jihad

The Book of the Judiciary

The Book of Testimonies

Appendix

Glossary

Rulings on Debts