Debt in Islām and the Islāmic Will

بِسۡمِ اللهِ الرَّحۡمٰنِ الرَّحِيۡمِ
 

"Indeed there is a fitnah (trial) for every Ummah, and the fitnah (trial) for my Ummah is wealth." 

‏"إِنَّ لِكُلِّ أُمَّةٍ فِتْنَةً وَفِتْنَةُ أُمَّتِي الْمَالُ ‏"‏  

Jami` at-Tirmidhi 2336

The primary objective for every believer in God Almighty and the Day of Judgment is to avoid the Hellfire. The secondary objective is to assist others in avoiding the Hellfire, the secondary objective supports the primary objective. This can be achieved by striving for fairness and justice and conducting one's life according to the Divine Will. For Muslims, this method is outlined in the Quran and exemplified by the Prophet Muhammad (ﷺ).

Islām is a comprehensive religion offering guidance on various life aspects, including the ethics of debt. Debt involves lending wealth to be returned at an agreed time. Helping others through lending is virtuous, as the Prophet Muhammad (ﷺ) stated that aiding someone in difficulty leads to Allāh alleviating our difficulties in the afterlife. Allāh emphasises cooperation in goodness and righteousness (Quran 5:2).

وَتَعَاوَنُوا۟ عَلَى ٱلْبِرِّ وَٱلتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا۟ عَلَى ٱلْإِثْمِ وَٱلْعُدْوَٰنِ ۚ وَٱتَّقُوا۟ ٱللَّهَ ۖ إِنَّ ٱللَّهَ شَدِيدُ ٱلْعِقَابِ

The ethical principles of lending money and paying back a debt include:

1. Sincere Intention: Aid those in need with the sincere intention of helping the needy without exploiting their situation.

Abu Huraira () narrated that Allah's Messenger (ﷺ) said: "He who alleviates the suffering of a brother out of the sufferings of the world, Allah would alleviate his suffering from the sufferings of the Day of Resurrection, and he who finds relief for one who is hard-pressed, Allah would make things easy for him in the Hereafter, and he who conceals (the faults) of a Muslim, Allah would conceal his faults in the world and in the Hereafter....." (Muslim 2699)

2. Respectful Collection: Collect debts respectfully, allowing extensions if necessary. The Prophet Muhammad (ﷺ) praised leniency in financial dealings. Jabir ibn ‘Abdillah () reported that the Messenger of Allāh (ﷺ) said, "May Allāh's mercy be on him who is lenient in his buying, selling, and in demanding back his money." (Bukhari no. 2076).

3. Proper Documentation: Record debts with witnesses to avoid misunderstandings when the time comes for repayment (Quran 2:282)

4. Transparency and Legal Compliance: Maintain honesty and adhere to legal standards to uphold integrity and financial stability.

5. Debt Avoidance: Avoid unnecessary debt; it burdens both worldly and spiritual life. So take on debt when you need necessities not to fulfil a lifestyle.

6. Timely Repayment: Clearly define repayment terms; sell valuables if necessary to repay debts. Abu Hurairah that the Messenger of Allāh (ﷺ) said: “The best of you - or among the best of you - are those who pay off their debts in the best manner.”

7. Responsibility in Debt: Failing to repay debts will result in repayment through good deeds in the afterlife. Ibn ‘Umar ()  reported that the Prophet Muhammad (ﷺ) said: “Whoever dies owing a Dinar or a Dirham, it will be paid back from his good deeds, because then there will be no Dinar or Dirham.” (Ibn Majah no. 2414).

8. Prayer for Debt Avoidance: Regularly pray to be free from debt, as it can lead to dishonesty and broken promises. Allāh's Messenger (ﷺ) used to invoke Allāh in the prayer saying, "O Allāh, I seek refuge with you from all sins, and from being in debt." Someone said, O Allāh's Messenger (ﷺ)! (I see you) very often you seek refuge with Allāh from being in debt. He replied, "If a person is in debt, he tells lies when he speaks, and breaks his promises when he promises." (Bukhari no 2397).

9. Debt Responsibility: Unpaid debts hinder entry to heaven, even for martyrs. Messenger of Allāh (ﷺ) said:

“In matters of debt. By Him in whose hand Muhammad’s soul is, if a man were to be killed in God’s path then come to life, be killed again in God’s path then come to life, and be killed once more in God’s path then come to life owing a debt, he would not enter paradise till his debt was paid.” (Ahmad transmitted it, Mishkat al-Masabih 2929).

'Amr b. al-'As () narrated: The Messenger of Allāh (ﷺ) said, “All the sins of a shahid (martyr) are forgiven except debt.” (Muslim 1886a)
Abū Hurayrah () narrated : The Messenger of Allāh (ﷺ) said, “A believer’s soul remains in suspense until all his debts are paid off.” (Amhad, Tirmidhī and Ibn Mājah)

10. The Prophet's Displeasure: The Prophet Muhammad (ﷺ) showed displeasure towards unpaid debts, reflecting the gravity of this responsibility.  The Prophet (ﷺ) once refused to pray for the deceased of a companion who still left a debt and left no assets to pay the debt. Abdullāh bin Abi Qatadah () narrated from his father that: "The Prophet was brought a (deceased) man to perform salah over him. So the Prophet (ﷺ) said: "Pray for your companion; for indeed he had a debt upon him." Abu Qatadah said: "It shall be upon me." So the Messenger of Allhā (ﷺ) said: "To pay it off?" (He said: "To pay it off.") So he performed the prayer for him." (Jami` at-Tirmidhi 1069)

These ethical principles emphasise the importance of settling one’s debts. Since this is not always possible to settle one's debts during one's lifetime, it is imperative that debts are settled from the deceased's estate as soon as possible. This responsibility falls on the heirs of the deceased. Failure to pay the debts has very serious consequences for the deceased.

To facilitate the settlement of debts, local Muslim Burial Councils, local Councils of Masaajid, and local Masaajid should consider establishing small local committees, "Deceased's Debts Resolution Committee" متوفی کے قرضوں کے ازالے کی کمیٹی . This committee can then be approached by those owed money by the deceased to recover their loan, thereby avoiding the need to contact the deceased's family directly during their time of grieving. The members of such a DDR Committee do not necessarily need to be active members of the Burial or Masaajid Council but those in the Muslim community with appropriate expertise and willingness to take on this task.

A form for this purpose is attached below for downloading. 

_{Dr. A. Hussain, 2024}