Debt and Loan | Islamic Laws by The Leader Ayatullah Ali Khamenei
Debt and Loan
Q1743. A friend of mine, who owns a factory, borrowed from me a sum of money. After a while, he returned the money with an extra amount which he paid of his own free will. It is worth mentioning, though, that we did not sign an agreement to the effect that he should give me that extra money. For my part, I didnt expect him to give me extra. Is it shari to take that additional amount of money?
A: In the given case that the additional amount was not stipulated in the loan deed and the borrower gave it to you willingly, you are allowed to use it.
Q1744. A person who borrowed a certain amount of money refused to pay it back. The lender took him to court to recover the debt. The court ruled in favor of the lender. Accordingly, the borrower had to pay back the debt; he also paid a tax for law enforcement. Is the lender responsible for that according to shar?
A: If the procrastinating debtor has to pay the tax of law enforcement, the creditor is liable to nothing in this regard.
Q1745. I gave my brother a loan. On moving to a new house, he gave me a carpet which I, in retrospect, mistook for a present. When I demanded the money back, he claimed that he had given me the carpet in settlement of the debt. Is he justified in his action, despite the fact that he didnt inform me of his intention at the time?
If I dont agree with him, should I return the carpet to him? And due to a decline in purchasing power of the currency, can I ask him to pay me back the debt plus an additional amount to make up the difference in the purchasing power of the currency?
A: For settling the loan, it is not sufficient to give a carpet or other things which are not of the same kind as the loan. As long as you do not consent to have the carpet in return for the loan, you should return it to him, as it still belongs to him. As to the difference in purchasing power, there is a caution to reach a settlement.
Q1746. What is the view on paying off a debt with ill-gotten money?
A: The debt is not considered settled by paying it off with other peoples money. Accordingly, the debtor remains indebted.
Q1747. A woman borrowed a sum of money equivalent to one-third of the value of the house she bought. Both the parties, lender and borrower, agreed that the borrower should return the money when she could afford it. However, the womans son gave the lender a check for the amount of the debt as surety. In the past four years, both parties died. Their respective heirs want to settle the matter. How should they go about it? Is it by way of relinquishing possession of one-third of the property to the lenders inheritors or would the amount written in the check do?
A: The lenders heirs have no right to the property. They are entitled to get the amount of the debt from the borrowers heirs if she has left sufficient money to settle it. As to the difference in money value, there is a caution to reach a settlement.
Q1748. We borrowed a sum of money from a person. After some time, he disappeared so that we no longer know his whereabouts. What can we do?
A: You have to wait and enquire [to try to locate him] to pay him or his heirs the money they owe. If it is beyond hope to find them, you can approach the authorized religious authority or give it as alms on behalf of the owner.
Q1749. Is it permissible to ask the debtor to pay the expenses of the law suit to prove the case and to recover the debt?
A: According to the law of Islam, the debtor is not required to compensate the expenses borne by the creditor.
Q1750. Should the debtor spare no effort to pay back the debt owed to other people, is it permissible for the creditors to recover the debt from his property, e.g., in secret?
A: If the debtor denies the debt owed or avoids payment without any excuse, the lender has the right to recover his debt from the debtors property.
However, if he does not know that he owes or doubts that; it is problematic – or rather impermissible – for the lender to recover his debt from the debtors property.
Q1751. Is the debt of the deceased considered among the right of people so that his heirs have to pay it from the deceaseds estate?
A: Irrespective of whom he owes to, i.e., be it to a real or legal entity, their rights have to be upheld. Therefore, it is obligatory on the heirs to pay the creditors or their heirs the debt from the deceaseds estate. Furthermore, they have no right to make use of the estate before they have settled the outstanding debts the deceased owed to other people.
Q1752. Someone is owed a sum of money. He owns a plot of land. The building on the land is not his. Is it permissible for the creditors to seize both the land and the property to recover their debt?
A: They have no right to seize any property which does not belong to the debtor.
Q1753. Suppose a person is in debt. Is the property he and his family live in excluded from seizure to pay the debt?
A: All that which the debtor needs — according to his status — in his day-to-day life, such as a house, furniture, car, and telephone, remain out of bounds insofar as paying the debt off.
Q1754. A businessman became bankrupt. All what is left for him is a building that he put in the market for sale. The proceeds from the sale of the building would not be sufficient to pay off half of the total debt. Is it permissible for the creditors to force him to sell the property, or should they wait for him to settle his debts gradually?
A: If the debtor and members of his family do not take the building as a residence, there is no objection to forcing him to sell it to pay off his debt, even though the proceeds would not be sufficient to settle the debt. For this part of the debt, it is not obligatory on the creditors to give him a period of grace. Nevertheless, they should wait for him to pay them back when he can afford it as far as the rest of the debt is concerned.
Q1755. Is it obligatory on one government department to pay the debt it owes to another?
A: Such a debt has the same ruling as any other debt insofar as its settlement is concerned.
Q1756. If a person pays off the debt of another person without telling them, is it incumbent on the debtor to compensate the person who paid off their debt?
A: The person, who paid off the debt of the other person, without telling him, has no right to demand compensation from the debtor. For his part, the debtor does not have to pay compensation in return for settling the debt.