Praise be to Allah,
The fuqaha’ define dayn (debt) as an obligation to be fulfilled, as it says in al-Mawsoo’ah al-Fiqhiyyah (21/102)[i]. The linguistic meaning of the word dayn (debt) in Arabic has to do with submission and humiliation. The connection between the shar’i meaning and the linguistic meaning is clear. The debtor is a prisoner, as the Prophet (peace and blessings of Allaah be upon him) said:
“Your companion is being detained by his debt.”[ii]
Islam takes the matter of debt very seriously and warns against it and urges the Muslims to avoid it as much as possible[iii]. The basic principle is that they must be fulfilled (unless they are pardoned). The Sunnah instructs that if a person passes away while in debt, his soul is suspended until the debts are paid off.
Seeking refuge with Allah from Debts
It was narrated from ‘Aa’ishah (may Allaah be pleased with her) that the Prophet (peace and blessings of Allaah be upon him) used to say in his prayer:
“Allaahumma inni a’oodhi bika min al-ma’tham wa’l-maghram (O Allaah, I seek refuge with You from sin and heavy debt).” Someone said to him: “How often you seek refuge from heavy debt!” He said: “When a man gets into debt, he speaks and tells lies, and he makes a promise and breaks it.”[iv]
No paradise for the man until his debt is paid off
Muhammad ibn Jahsh (may Allaah be pleased with him) said:
We were sitting with the Messenger of Allaah (peace and blessings of Allaah be upon him) when he raised his head towards the sky, then he put his palm on his forehead and said: “Subhaan-Allaah! What a strict issue has been revealed to me!” We remained silent and were afraid. The following morning I asked him, “O Messenger of Allaah, what is this strict issue that has been revealed?” He said, “By the One in Whose hand is my soul, if a man were killed in battle for the sake of Allaah, then brought back to life, then killed and brought back to life again, then killed, and he owed a debt, he would not enter Paradise until his debt was paid off[v].”
It was narrated from Thawbaan (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah be upon him) said:
“Whoever dies free from three things – arrogance, cheating, and debt – will enter Paradise.[vi]”
The soul of a believer is suspended until his debt is paid off
The Prophet, sallallahu ‘alayhi wa sallam, said,
“The soul of the believer is suspended by his debt until it is settled for him.”[vii]
The author of Tuhfat Al-Ahwathi said, “i.e., it (the soul of the believer) is detained and kept from reaching its noble destination. Al-Iraqi said, ‘i.e., no judgment is passed as to whether it will be saved or doomed until it is determined whether his debt will be paid off or not.’”
He may be punished in his grave as well until his debts are paid off. Jaabir, may Allah be pleased with him, said:
“A man died and we washed and shrouded him. Then we brought him to the Messenger of Allah, sallallahu ‘alayhi wa sallam, to lead the funeral prayer for him. He, sallallahu ‘alayhi wa sallam, took a step forward and then asked, ‘Does he have any outstanding debts?’ We answered, ‘Two dinars.’ (He, sallallahu ‘alayhi wa sallam, started to leave.) Abu Qataadah, may Allah be pleased with him, took responsibility for paying them, saying, ‘The two dinars are my responsibility.’ When Abu Qataadah paid off the debt one or two days later, the Messenger of Allah, sallallahu ‘alayhi wa sallam, said, ‘
Now you have made his skin cool down.’”[viii]
Ash-Shawkaani wrote, “The statement, ‘Now you have made his skin cool down,’ is evidence that the deceased becomes absolved of the debt and is no longer tormented because of it once the debt is actually paid off on his behalf, not merely when it is declared that someone will repay it on his behalf. This is why the Prophet, sallallahu ‘alayhi wa sallam, asked Abu Qataadah the following day whether he had repaid it or not…” [Nayl Al-Awtaar]
Al-Albaani commented on the hadeeth, “‘Now you have made his skin cool down;’ this is because he is relieved of the punishment once his debt is repaid.[ix]” [Ahkaam Al-Janaa’iz]
Obligations on the Heirs to pay off the debts of the deceased
As soon as possible, the deceased’s debts should be paid off from whatever wealth he left behind, even if that would exhaust all of it. If the deceased was known to strive in paying his debts, and yet they could not all be covered by the wealth that he left behind, it is the Islamic state’s obligation to pay off his outstanding debts. If this is not possible, his closest relatives and other Muslims are encouraged to pay on his behalf.
Sad Bin al-Atwal (R.A) reported that his brother died, leaving only three hundred dirhams for his children. Sa‘d wanted to spend the money on his children, but the Prophet (PBUH) told him:
“Your brother is restrained by his debt. So go pay it off for him.’
Sa‘d went and did as he was commanded, then came back and said, “O Allah’s Messenger! I have paid off all his debts, except for two dinars claimed by a woman without any evidence.” He (PBUH) told him,
‘Give her because she is truthful.’[x]
Samurah Bin Jundub (R.A) reported that the Prophet (PBUH) once prayed the morning prayer and then prayed Janazah for a dead man. After he finished he asked, “Is any of the family of so-and-so (the deceased) present? When he heard no answer, the Prophet (PBUH) repeated his question three times, and a man from the back rows said, “Here I am,” and then, dragging his garments, proceeded toward the Prophet (PBUH). The Prophet (PBUH) said:
“What prevented you from responding to me the first two times? I did not call out your name except for something good. Your man is restrained by his debt from entering Jannah. So, If you wish, ransom him; otherwise, surrender him to Allah’s punishment!’
Samurah concluded, “You should have seen his family and other relatives hurrying to pay off his debts until no one was left asking for anything from him.”[xi]
May Peace and blessings be on the last and final prophet Muhammad.
Copied and compiled from the following sources:
[i] https://islamqa.info/en/answers/71183/seriousness-of-debt
[ii] [ii] Narrated by Abu Dawood, 3341; classed as hasan by al-Albaani in Saheeh Abi Dawood.
[iii] https://islamqa.info/en/answers/71183/seriousness-of-debt
[iv] Narrated by al-Bukhaari (832) and Muslim (589).
[v] Grade: Sahih (Darussalam) Reference : Sunan an-Nasa’i 4684. Classed as hasan by al-Albaani in Saheeh al-Nasaa’i, 4367.
[vi] Grade: Sahih (Darussalam) Reference : Jami` at-Tirmidhi 1572
[vii] [Ahmad and At-Tirmithi – At-Tirmithi graded it hasan (good)]
[viii] Recorded by Ahmad, al-Hakim, and others. Verified to be hasan by al-Haythaml and al-AlbanT (Ahkam ul-Janaiz p. 27).
See also, FUNERALS REGULATIONS & EXHORTATIONS, 2nd Edition. MUHAMMAD MUSTAFA AL-JIBALY, Page 29
[ix] https://www.islamweb.net/en/fatwa/344989/condition-of-person-who-dies-while-indebted-in-grave
[x] Recorded by Ibn Majah, Ahmad, and al-Bayhaqi. Verified to be authentic by al- Albani (Ahkam ul-Janaiz p. 26). See also, FUNERALS REGULATIONS & EXHORTATIONS, 2nd Edition. MUHAMMAD MUSTAFA AL-JIBALY, Page 28
[xi] Recorded by Abu Dawud, an-Nasal, and others. Verified to be authentic by al-
AlbanT (Ahkam ul-Janaiz p. 26). See also, FUNERALS REGULATIONS & EXHORTATIONS, 2nd Edition. MUHAMMAD MUSTAFA AL-JIBALY, Page 28