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
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.