Is it permissible to lend money to a debtor who has become bankrupt, on the condition that the debtor pays back a specified amount monthly?

Chapter on Loan (Qard)

Al-Mughni

Book of Sales

Book 12 · Issue 1 · Bab 7

Open in Qurani

Primary text

It is permissible for a creditor to lend money to his bankrupt debtor, stipulating repayment of a known sum monthly. This permissibility is based on the rationale that the creditor is only benefiting from receiving what was already rightfully due to him.