Is atonement (Kaffarah) obligatory if a person possesses the means for it but owes a debt that is being demanded?

Supporting text

If the debt is not demanded, one narration suggests the atonement is obligatory because it does not have a specific minimum threshold of wealth tied to it, thus it is not nullified by the debt, like Zakat al-Fitr. The second narration, which is considered more sound, suggests the atonement is not obligatory because, being a right of Allah payable from wealth, the human right (debt) supersedes it. This latter view is preferred because the right of a human being takes precedence due to its inherent need and the benefit of freeing the debtor's liability, whereas the right of Allah is based on leniency due to His generosity and self-sufficiency. Furthermore, monetary atonement has an alternative form, whereas the debtor's obligation does not.