What is the ruling on debt preventing Zakat for Imam Abu Hanifa?

Chapter on Zakat on Debt and Charity

Al-Mughni

Book of Zakat

Book 8 · Issue 2 · Bab 7

Open in Qurani

Primary text

Imam Abu Hanifa holds that debt for which a claim can be made prevents Zakat on all wealth, except for grain and fruits. This is based on his view that the obligation due on crops is not considered Zakat in the same sense. He differentiates apparent wealth from hidden wealth by noting that the attachment of Zakat to apparent wealth is stronger due to its visibility and the reliance of the needy upon it. This is evidenced by the Prophet (peace be upon him) and the Caliphs sending collectors (sa'i) to take the due amount directly from the owners, and Abu Bakr fighting those who withheld it. Furthermore, the collectors take Zakat on what they find without inquiring about the owner's debts, indicating that debt does not prevent Zakat on these assets.