Is it permissible for a creditor to discharge a debt owed to him by giving the debtor Zakat funds intended for distribution, thereby considering the debt settled from the Zakat?

Primary text

It is not permissible to discharge a debt owed to oneself by giving the debtor Zakat funds and counting it as payment of the debt. This is because Zakat is a right belonging to God (Allah), and it is not permissible to use it for one's own benefit or to treat it as a means to settle one's private claim. Furthermore, one cannot count a debt one is owed from Zakat before actually taking possession of the Zakat funds, as this constitutes an annulment of the obligation to pay and deliver it. However, if the debtor uses the received Zakat to repay the creditor, and the creditor then returns the repaid amount to the debtor as a rightful distribution of Zakat, this is permissible. Yet, if the transaction is conducted using a stratagem (hiylah) to achieve the settlement of the private debt, it is not favored. If the debtor borrows money to repay the debt and then returns those funds to the creditor, counting it as Zakat disbursement, it is not permissible if the intention behind the disbursement is to revive the creditor's capital.