What is the ruling on a settlement made by a third party concerning a debt (*dayn*)?

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If the settlement is made concerning a debt, it is valid whether done with or without the defendant's permission. This is permissible because settling a debt on behalf of another is allowed both with and without their permission. Evidence supports this as 'Ali and Abu Qatada (may Allah be pleased with them) settled debts for a deceased person, and the Prophet (peace be upon him) approved it.