43. Loans, Payment of Loans, Freezing of Property, Bankruptcy

Whoever buys a thing on credit

Narrated Jabir bin `Abdullah: While I was in the company of the Prophet (ﷺ) in one of his Ghazawat, he asked, "What is wrong with your camel? Will you sell it?" I replied in the affirmative and sold it to him. When he reached Medina, I took the camel to him in the morning and he paid me its price. Narrated Al-A`mash: When we were with Ibrahim, we talked about mortgaging in deals of Salam. Ibrahim narrated from Aswad that `Aisha had said, "The Prophet (ﷺ) bought some foodstuff on credit from a Jew and mortgaged an iron armor to him."

Borrowing money from people

Narrated Abu Huraira: The Prophet (ﷺ) said, "Whoever takes the money of the people with the intention of repaying it, Allah will repay it on his behalf, and whoever takes it in order to spoil it, then Allah will spoil him."

Repayment of debts

Narrated Abu Dhar: Once, while I was in the company of the Prophet, he saw the mountain of Uhud and said, "I would not like to have this mountain turned into gold for me unless nothing of it, not even a single Dinar remains of it with me for more than three days (i.e. I will spend all of it in Allah's Cause), except that Dinar which I will keep for repaying debts." Then he said, "Those who are rich in this world would have little reward in the Hereafter except those who spend their money here and there (in Allah's Cause), and they are few in number." Then he ordered me to stay at my place and went not far away. I heard a voice and intended to go to him but I remembered his order, "Stay at your place till I return." On his return I said, "O Allah's Messenger (ﷺ)! (What was) that noise which I heard?" He said, "Did you hear anything?" I said, "Yes." He said, "Gabriel came and said to me, 'Whoever amongst your followers dies, worshipping none along with Allah, will enter Paradise.' " I said, "Even if he did such-and-such things (i.e. even if he stole or committed illegal sexual intercourse)" He said, "Yes." Narrated Abu Huraira: Allah's Messenger (ﷺ) said, "If I had gold equal to the mountain of Uhud, it would not please me that it should remain with me for more than three days, except an amount which I would keep for repaying debts."

To buy camels on credit

Narrated Abu Huraira: A man demanded his debts from Allah's Messenger (ﷺ) in such a rude manner that the companions of the Prophet intended to harm him, but the Prophet (ﷺ) said, "Leave him, no doubt, for he (the creditor) has the right to demand it (harshly). Buy a camel and give it to him." They said, "The camel that is available is older than the camel he demands. "The Prophet (ﷺ) said, "Buy it and give it to him, for the best among you are those who repay their debts handsomely. "

Demanding debts handsomely

Narrated Hudhaifa: I heard the Prophet (ﷺ) saying, "Once a man died and was asked, 'What did you use to say (or do) (in your life time)?' He replied, 'I was a businessman and used to give time to the rich to repay his debt and (used to) deduct part of the debt of the poor.' So he was forgiven (his sins.)" Abu Mas`ud said, "I heard the same (Hadith) from the Prophet."

Can one give an older (camel) than that he owes?

Narrated Abu Huraira: A man came to the Prophet (ﷺ) and demanded a camel (the Prophet (ﷺ) owed him). Allah's Messenger (ﷺ) told his companions to give him (a camel). They said, "We do not find except an older camel (than what he demands). (The Prophet (ﷺ) ordered them to give him that camel). The man said, "You have paid me in full and may Allah also pay you in full." Allah's Messenger (ﷺ) said, "Give him, for the best amongst the people is he who repays his debts in the most handsome manner."

Repaying debts handsomely

Narrated Abu Huraira: The Prophet (ﷺ) owed a camel of a certain age to a man who came to demand it back. The Prophet (ﷺ) ordered his companions to give him. They looked for a camel of the same age but found nothing but a camel one year older. The Prophet (ﷺ) told them to give it to him. The man said, "You have paid me in full, and may Allah pay you in full." The Prophet (ﷺ) said, "The best amongst you is he who pays his debts in the most handsome manner." Narrated Jabir bin `Abdullah: I went to the Prophet (ﷺ) while he was in the Mosque. (Mas`ar thinks, that Jabir went in the forenoon.) After the Prophet (ﷺ) told me to pray two rak`at, he repaid me the debt he owed me and gave me an extra amount.

If somebody repays less than what he owes

Narrated Jabir bin `Abdullah: My father was martyred on the day (of the battle) of Uhud, and he was in debt. His creditors demanded their rights persistently. I went to the Prophet (and informed him about it). He told them to take the fruits of my garden and exempt my father from the debts but they refused to do so. So, the Prophet did not give them my garden and told me that he would come to me the next morning. He came to us early in the morning and wandered among the date-palms and invoked Allah to bless their fruits. I then plucked the dates and paid the creditors, and there remained some of the dates for us.

To settle one's accounts by repaying

Narrated Jabir bin `Abdullah: When my father died he owed a Jew thirty Awsuq (of dates). I requested him to give me respite for repaying but he refused. I requested Allah's Messenger (ﷺ) to intercede with the Jew. Allah's Messenger (ﷺ) went to the Jew and asked him to accept the fruits of my trees in place of the debt but the Jew refused. Allah's Apostle entered the garden of the date-palms, wandering among the trees and ordered me (saying), "Pluck (the fruits) and give him his due." So, I plucked the fruits for him after the departure of Allah's Apostle and gave his thirty Awsuq, and still had seventeen Awsuq extra for myself. Jabir said: I went to Allah's Messenger (ﷺ) to inform of what had happened, but found him praying the `Asr prayer. After the prayer I told him about the extra fruits which remained. Allah's Messenger (ﷺ) told me to inform (`Umar) Ibn Al-Khattab about it. When I went to `Umar and told him about it, `Umar said, "When Allah's Messenger (ﷺ) walked in your garden, I was sure that Allah would definitely bless it."

To seek refuge with Allah from being in debt

Narrated `Aisha: Allah's Messenger (ﷺ) used to invoke Allah in the prayer saying, "O Allah, I seek refuge with you from all sins, and from being in debt." Someone said, O Allah's Messenger (ﷺ)! (I see you) very often you seek refuge with Allah 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."

The funeral Salat (prayer) for a dead person in debt

Narrated Abu Huraira: The Prophet (ﷺ) said, "If someone leaves some property, it will be for the inheritors, and if he leaves some weak offspring, it will be for us to support them." Narrated Abu Huraira: The Prophet (ﷺ) said, "I am closer to the believers than their selves in this world and in the Hereafter, and if you like, you can read Allah's Statement: "The Prophet (ﷺ) is closer to the believers than their own selves." (33.6) So, if a true believer dies and leaves behind some property, it will be for his inheritors (from the father's side), and if he leaves behind some debt to be paid or needy offspring, then they should come to me as I am the guardian of the deceased."

Procrastination (delay) in repaying debts by a wealthy person is injustice

Narrated Abu Huraira: Allah's Messenger (ﷺ) said, "Procrastination (delay) in repaying debts by a wealthy person is injustice."

The owner of the right has the permission to demand his right

Narrated Abu Huraira: A man came to the Prophet (ﷺ) and demanded his debts and used harsh words. The companions of the Prophet wanted to harm him, but the Prophet (ﷺ) said, "Leave him, as the creditor (owner of the right) has the right to speak."

If somebody lends something and the possessor gets bankrupt

Narrated Abu Huraira: Allah's Messenger (ﷺ) said, "If a man finds his very things with a bankrupt, he has more right to take them back than anyone else."

Delay in the repayment of debts for a day or so

The property of a bankrupt

Narrated Jabir bin `Abdullah: A man pledged that his slave would be manumitted after his death. The Prophet (ﷺ) asked, "Who will buy the slave from me?" Nu'aim bin `Abdullah bought the slave and the Prophet (ﷺ) took its price and gave it to the owner.

To lend money or sell on credit for a fixed time

Narrated Abu Hurairah (ra): Allah's Messenger (ﷺ) mentioned an Israeli man who asked another Israeli to lend him money, and the latter gave it to him for a fixed period. (Abu Hurairah mentioned the rest of narration) [See chapter: Kafala in loans and debts. Hadith 2291]

Intercession for the reduction of debts

Narrated Jabir: When `Abdullah (my father) died, he left behind children and debts. I asked the lenders to put down some of his debt, but they refused, so I went to the Prophet (ﷺ) to intercede with them, yet they refused. The Prophet (ﷺ) said (to me), "Classify your dates into their different kinds: 'Adha bin Zaid, Lean and 'Ajwa, each kind alone and call all the creditors and wait till I come to you." I did so and the Prophet (ﷺ) came and sat beside the dates and started measuring to each his due till he paid them fully, and the amount of dates remained as it was before, as if he had not touched them. (On another occasion) I took part in one of Ghazawat among with the Prophet (ﷺ) and I was riding one of our camels. The camel got tired and was lagging behind the others. The Prophet (ﷺ) hit it on its back. He said, "Sell it to me, and you have the right to ride it till Medina.'' When we approached Medina, I took the permission from the Prophet (ﷺ) to go to my house, saying, "O Allah's Messenger (ﷺ)! I have newly married." The Prophet (ﷺ) asked, "Have you married a virgin or a matron (a widow or divorcee)?" I said, "I have married a matron, as `Abdullah (my father) died and left behind daughters small in their ages, so I married a matron who may teach them and bring them up with good manners." The Prophet (ﷺ) then said (to me), "Go to your family." When I went there and told my maternal uncle about the selling of the camel, he admonished me for it. On that I told him about its slowness and exhaustion and about what the Prophet (ﷺ) had done to the camel and his hitting it. When the Prophet (ﷺ) arrived, I went to him with the camel in the morning and he gave me its price, the camel itself, and my share from the war booty as he gave the other people.

Wasting money

Narrated Ibn `Umar: A man came to the Prophet (ﷺ) and said, "I am often betrayed in bargaining." The Prophet (ﷺ) advised him, "When you buy something, say (to the seller), 'No deception." The man used to say so afterwards. Narrated Al-Mughira bin Shu`ba: The Prophet (ﷺ) said, "Allah has forbidden for you, (1) to be undutiful to your mothers, (2) to bury your daughters alive, (3) to not to pay the rights of the others (e.g. charity, etc.) and (4) to beg of men (begging). And Allah has hated for you (1) vain, useless talk, or that you talk too much about others, (2) to ask too many questions, (in disputed religious matters) and (3) to waste the wealth (by extravagance).

A slave is a guardian of the property of his master

Narrated `Abdullah bin `Umar: I heard Allah's Messenger (ﷺ) saying, "Everyone of you is a guardian, and responsible for what is in his custody. The ruler is a guardian of his subjects and responsible for them; a husband is a guardian of his family and is responsible for it; a lady is a guardian of her husband's house and is responsible for it, and a servant is a guardian of his master's property and is responsible for it." I heard that from Allah's Messenger (ﷺ) and I think that the Prophet (ﷺ) also said, "A man is a guardian of is father's property and is responsible for it, so all of you are guardians and responsible for your wards and things under your care."