Q 5: What is the ruling on
the Zakah due on the debt of an insolvent person,
who is unable to repay the debt for many years? What is the ruling on the Zakah due on the debt of a solvent person who delays repaying their debt? Also, what is the ruling on the debt which remains in a solvent person's possession for one lunar year and they have the intention to repay it?
There is no Zakah due on the creditor if the debtor delays repaying their debt, whether they are insolvent or solvent, if the creditor cannot get their money back either due to lack of documentation or because the authorities do not assist them in getting their money back - as happens in some countries. In such cases, the creditor is not obligated to pay Zakah until they receive their money and own it for one lunar year. On the other hand, if the debtor is solvent and can repay the debt, then Zakah is due on the creditor for each lunar year that passes if the debt itself reaches the Nisab (the minimum amount on which Zakah is due) or when combined with the other money or goods the creditor owns.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.