Is the transfer (sale or gift) of a debt to the debtor himself valid?
General Chapter
Al-Mughni
Book of Gifts and Donations
Primary text
The sale or gift of a debt to the person who owes it is invalid. This position is held by Abu Hanifa, Al-Thawri, and Ishaq. Imam Ahmad stated that if one has a food loan (*qard*) against a man, one may sell it to that debtor for cash, but one may not sell it to anyone else for cash or deferred payment. Furthermore, if one loans dirhams or dinars to a man, one should not accept merchandise (*'arad*) from another person in exchange for that debt owed to him.
Supporting text
The Hanafi view is that the transaction is invalid. Imam Al-Shafi'i states that the sale is invalid if the debtor is bankrupt, deliberately slow to pay (*mumāṭil*), or denies the debt, because delivery is impossible. However, if the debtor is solvent and ready to pay, there are two opinions regarding the sale: one holds it valid because one is purchasing a stable liability, similar to purchasing a debt against one's own liability, provided the purchase is made with actual currency or both parties exchange possession in the same session to avoid selling a debt for a debt. The opposing view maintains invalidity because the seller is incapable of delivering the debt, akin to selling an absconding slave (*ābiq*).