بِسۡمِ اللهِ الرَّحۡمٰنِ الرَّحِيۡمِ
This is a proposal for local Muslim burial councils, Councils of Masaajid, and individual Masaajid to consider establishing an "Inheritance Debt Resolution Committee" to facilitate the expeditious settlement of debts owed by deceased individuals. The proposed Committee would address several key issues in the current process of debt resolution in Muslim communities.
Introduction
In Islam, debt is not merely a financial obligation but a profound moral responsibility. The Prophet Muhammad (
) informed us that, “The soul of a believer remains suspended until their debt is settled” (Tirmidhi, Book 7, Hadith 49) and he () 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). This spiritual urgency underscores the Islamic mandate to resolve debts promptly, ensuring the deceased’s peaceful transition to the Hereafter. The Quran further mandates documentation of debts: “When you contract a loan for a fixed period, commit it to writing” (Quran 2:282), establishing transparency as a divine principle.
Inheritance debt refers to debts left behind by a deceased person that must be settled from their estate before the remaining assets can be distributed to heirs. In Islamic law, settling the debts of the deceased is considered a critical obligation that takes precedence over distributing inheritance.
Establishing a local Inheritance Debt Resolution Committee (IDRC) aligns with these teachings, offering a structured mechanism to address unresolved debts. By centralising efforts under Islamic institutions, the IDRC would uphold communal accountability, mitigate familial disputes, and fulfil the Quranic injunction to “cooperate in righteousness and piety” (Quran 5:2).
Scope and Importance of the Problem
Over 56% of UK adults die without a valid will, complicating inheritance distribution. Within Muslim communities, informal lending practices exacerbate this issue: many transactions lack written documentation, contravening Quranic directives. Undocumented debts leave families unaware of liabilities, risking violations of Islamic inheritance laws (Quran 4:11–12).
The consequences are severe. Creditors face uncertainty, while heirs risk inheriting unresolved liabilities. The Prophet () emphasised communal responsibility, refusing to pray over a debtor until a companion settled the debt (Musnad Ahmad 3/629). Without a systematic resolution, the deceased’s soul remains in spiritual limbo, and families endure prolonged financial and emotional strain.
Proposal to Tackle the Problem
A proposal s made in this paper to establish local Inheritance Debt Resolution Committees (IDRC) under the auspices of the local Council of Masasjid in collaboration with local Muslim Burial Council (local MBC) and local imams. This collaborative initiative would try to ensure the debts of all locally deceased Muslims is settled expeditiously while being deeply rooted in community structures and religious authority, enhancing its credibility and reach.
The IDRC's primary objectives would be threefold, each addressing a critical aspect of Islamic financial ethics and inheritance practices. Firstly, the Committee would spearhead efforts to encourage Muslims to formalise their debts through written contracts. This documentation drive aligns with Quranic injunctions to record financial transactions, as stated in Surah Al-Baqarah (2:282), promoting transparency and reducing potential disputes.
Secondly, the IDRC will focus on educational initiatives, organising workshops and seminars to promote understanding of Islamic inheritance laws and the importance of writing an Islamic Will which is valid under English law. These educational efforts aim to address the alarming statistic that over 56% of UK adults die intestate, a figure potentially higher among Muslim communities due to misconceptions about Sharia compliance in UK inheritance laws.
Thirdly, the committee could serve a mediatory role, acting as an intermediary between creditors and bereaved families. This function is particularly vital in navigating the sensitive period following a death, ensuring that debt claims are handled with both Islamic principles of justice and compassion in mind.
To amplify these objectives, local imams play a pivotal role. By leveraging their moral authority and community influence, imams can integrate IDRC advocacy into their sermons and teachings. This integration allows for the reinforcement of Islamic financial ethics within a spiritual context. Imams can emphasise examples and teachings of the Prophet Muhammad () that underscore the importance of debt repayment and financial integrity. For instance, they might quote the hadith from Sahih al-Bukhari (43:6) where the Prophet Muhammad () stated, "The best among you are those who repay debts handsomely." This teaching not only encourages prompt debt settlement but also promotes generosity and ethical conduct in financial dealings.
By operating under this framework, the IDRC can effectively address the complex issues surrounding inheritance and debt in Muslim communities, promoting financial responsibility, ethical practices, and adherence to Islamic principles.
Framework for the Project
1. Educational Groundwork
The successful implementation of the IDRC hinges on robust community education rooted in Islamic principles. Central to this effort is the teachings of Islam about debt ethics in the masaajid especially at Friday khutab, where imams can elucidate Quranic injunctions such as “If someone is in hardship, postpone repayment until ease” (Quran 2:280). Such khutab can serve as a moral compass, reinforcing the spiritual consequences of unresolved debts—such as the Prophet’s () refusal to pray over-indebted individuals until obligations were met . By contextualizing debt resolution within Islamic teachings, imams can inspire congregants to prioritise ethical financial practices and document transactions, aligning with Quranic directives to “commit loans to writing” (Quran 2:282).
Complementing this, workshops led by appropriate experts can demystify Islamic inheritance laws and debt documentation. Such community events would train participants in drafting Sharia-compliant wills and recording debts through written contracts. Practical modules might include case studies on estate management and role-playing exercises to navigate familial disputes, ensuring heirs understand their duty to settle debts from the deceased’s estate. Such initiatives address the alarming statistic that 56% of UK Muslims lack wills, mitigating risks of intestacy and unresolved liabilities.
2. Collaborative Infrastructure
A unified approach between Islamic institutions is critical. The local Council of Masaajid should issue standardized guidelines for debt resolution, including templates for loan agreements and protocols for mediating disputes. By coordinating with local masaajid, the Council can ensure consistency in messaging, such as distributing multilingual resources on inheritance planning and hosting quarterly seminars on financial literacy emphasising transparency and communal trust .
Simultaneously, the local Muslim Burial Council (local MBC) will need to integrate IDRC protocols into burial processes. Upon notification of a death, the local MBC would sensitively enquire if families wish to include a debt claim clause in the death and janaza prayer announcement, allowing creditors to come forward. Validated claims can then be prioritised ideally before burial rites, adhering to the Prophet’s () emphasis on resolving debts promptly to free the deceased’s soul. In cases where estates are insufficient, the local IDRC could collaborate with any local or national zakat charities to explore Sharia-compliant solutions, such as voluntary repayment by heirs or creditor forgiveness .
By intertwining education with institutional cooperation, the IDRC fosters a culture of accountability, ensuring debts are settled with dignity and aligning communal practices with Quranic justice.
Implementation of the Project
The local Muslim Burial Council (local MBC) would need to play a pivotal role in initiating the debt resolution process. Upon notification of a death, the local MBC sensitively inquires whether the family wishes to include an optional debt claim clause in public death announcements. This clause allows creditors to come forward while respecting the bereaved family’s privacy and emotional state. By framing this step as voluntary, the local MBC upholds Islamic principles of compassion and avoids adding undue stress during a period of grief.
Once the announcement is disseminated, creditors are directed to submit claims through standardized IDRC forms, which require detailed evidence such as written contracts, witness statements, or transaction records. This formal process ensures accountability and reduces disputes, aligning with the Quranic mandate to “reduce debts to writing” (Quran 2:282). The IDRC reviews each claim meticulously, verifying its authenticity against submitted documentation before proceeding.
Following validation, the IDRC would notify the deceased’s family of all verified claims, providing a transparent summary of outstanding debts. This step ensures heirs are fully informed of their obligations under Islamic inheritance laws, which prioritise debt settlement before asset distribution (Quran 4:11–12). Clear communication fosters trust and encourages prompt resolution, minimising the risk of unresolved liabilities affecting the deceased’s spiritual status.
As the system evolves, the IDRC may expand its services to include mediation or arbitration, modelled on established conflict-resolution frameworks. Trained mediators would facilitate negotiations between creditors and families, aiming for equitable solutions such as extended repayment timelines or partial debt forgiveness. This phased approach not only addresses immediate concerns but also cultivates a culture of ethical financial conduct within the community, reinforcing the Prophetic teaching to “relieve the debtor with ease” (Sahih al-Bukhari 2397).
By integrating these steps, the IDRC ensures debts are resolved with dignity, transparency, and adherence to Islamic ethics, thereby safeguarding both communal harmony and individual accountability.
The Role of Zakat Funds in Settling Debts
The use of zakat to settle a deceased Muslim’s debts is governed by nuanced juristic principles, with rulings varying across Islamic schools of thought. Under Maliki and Shafi’i jurisprudence, zakat may be allocated to clear debts if the deceased was eligible for zakat during their lifetime and the debt was incurred for lawful purposes. These schools interpret Quranic injunctions broadly, emphasising communal welfare (maslaha) and the Quranic directive to aid “those in debt” (Quran 9:60). For instance, Imam al-Dardir of the Maliki school affirmed that zakat could discharge a deceased’s lawful debt if the estate is insufficient.
Conversely, the Hanafi and Hanbali schools restrict zakat disbursement to living recipients, arguing that posthumous debt relief does not directly benefit the deceased, who no longer bears worldly obligations. However, they permit voluntary repayment by heirs or third parties as an act of charity (sadaqah), reflecting the Prophetic teaching: “Whoever relieves a believer’s distress, Allāh (
) will relieve theirs on the Day of Resurrection” (Sahih Muslim 2699).
IDRC could establish a zakat subcommittee to assess eligibility. This body would verify whether the deceased met zakat criteria and mediate between creditors and heirs. Scholars like Ibn Qudamah, a prominent Hanbali jurist, endorsed such communal efforts, noting that debt relief aligns with Islam’s emphasis on collective responsibility and social harmony. By integrating these principles, the IDRC ensures adherence to Sharia while addressing the ethical imperative to safeguard the deceased’s spiritual and financial legacy.
Conclusion
Unresolved debts jeopardise spiritual and familial harmony, violating Islamic principles of justice. The establishment of a local IDRC offers a faith-compliant solution, uniting masaajid, burial councils, and scholars to uphold Quranic mandates. By prioritising documentation, education, and mediation, the IDRC would try to ensure debts are settled with dignity.
Implementing this proposal requires sustained collaboration, but its success would affirm the Muslim community’s commitment to financial integrity and divine accountability. As the Prophet () taught us, “Relieve the debtor, and Allāh () will relieve you in this world and the next” (Sahih Muslim 2699).
Dr. A. Hussain Feb. 2025