Firstly, the sacred texts emphasize the obligation to repay debts and the seriousness of neglecting this duty. Allāh Almighty says: “Indeed, Allāh commands you to render trusts to whom they are due.” [An-Nisā᾽: 58]. The Prophet Muḥammad (peace be upon him) said, as narrated by ᾽Aḥmad and Al-Ḥākim, authenticated and agreed upon by Adh-Dhahabī, from Muḥammad ibn ῾Abdullāh ibn Jaḥsh (may Allāh be pleased with him): “We were sitting in the courtyard of the mosque where funerals are placed, and the Messenger of Allāh (peace be upon him) had his head raised to the sky. Then he lowered his gaze and placed his hand on his forehead and said: ‘Glory be to Allāh! Glory be to Allāh! What strictness has been revealed!’ We remained silent for a day and a night, thinking it was not good until the next morning. Muḥammad said: ‘I asked the Messenger of Allāh (peace be upon him): What is the strictness that has been revealed?’ He said: ‘In the matter of debt. By the One in whose hand is Muḥammad’s soul, if a man were killed for the sake of Allāh, then returned to life, then was killed again for the sake of Allāh, then returned to life, and he owed a debt, he would not enter Paradise until his debt was settled.'”

The Prophet (peace be upon him) also said, as narrated by Abū Hurayrah: “The soul of the believer is held in suspense because of his debt until it is paid off” [At-Tirmidhī, Ḥasan]. And he said, as narrated by Thawbān (may Allāh be pleased with him): “Whoever dies free from three things enters Paradise: arrogance, debt, and cheating” [At-Tirmidhī, Ṣaḥīḥ].

The Prophet (peace be upon him) refrained from leading the prayer for a debtor who had no one to settle his debt. As narrated in Al-Bukhārī from Salamah ibn Al-᾽Akwa῾ (may Allāh be pleased with him), he said: “We were sitting with the Prophet (peace be upon him) when a funeral procession was brought, and they said: ‘Pray for it.’ He asked: ‘Does he have any debt?’ They said: ‘No.’ He asked: ‘Did he leave anything?’ They said: ‘No.’ So, he prayed for it. Then another funeral was brought, and they said: ‘Pray for it.’ He asked: ‘Does he have any debt?’ They said: ‘Yes.’ He asked: ‘Did he leave anything?’ They said: ‘No.’ So, he prayed for it. Then another funeral was brought, and they said: ‘Pray for it.’ He asked: ‘Does he have any debt?’ They said: ‘Yes.’ He asked: ‘Did he leave anything?’ They said: Three dinars.’ He said: ‘Pray for your companion.’ Abū Qatādah said: ‘Pray for him, O Messenger of Allāh, and I will take care of his debt.’ So he prayed for him.”

Secondly, it is obligatory for a Muslim to repay their debt in due time during their lifetime, whether the debt has a fixed term or not, whether it is owed to a Muslim or a non-Muslim, and whether it is owed to an individual or an institution.

One should also make a will to repay their debt from what they leave behind if they are unable to do so during their lifetime or if some debts are only due upon death, such as the remaining dowry owed to the wife.

Thirdly, if someone dies with a permissible debt and has no assets to cover it, it is recommended that their relatives pay off the debt. If there are no relatives, it is recommended that the debt be paid from public funds, as the Prophet (peace be upon him) said: “I am closer to the believers than their own selves. So, if a believer dies and leaves a debt, I will pay it, and if he leaves wealth, it is for his heirs.”

However, this type of debt must be permissible, and the person must have incurred it for their essential needs or the needs of those they support.

Fourthly, regarding bank loans or credit card debts for which the deceased has no funds to pay off, it is best for the family to try to have the debt forgiven by the creditor (the creditor may benefit from tax deductions). Otherwise, the debt remains and is obligatory upon the debtor.

Fatwa issued by Dr. Khālid Naṣr