What is the ruling regarding Zakah on a debt owed by an insolvent person, a denier, or one who deliberately delays payment?
Chapter on Zakat on Debt and Charity
Al-Mughni
Book of Zakat
Primary text
There are two narrations concerning Zakah on such a debt. The first narration states Zakah is not due; this is the position of Qatadah, Ishaq, Abu Thawr, and the people of Iraq, because the owner lacks the power to benefit from the asset, similar to the wealth of a *mukatab* (a slave working towards manumission). The second narration states Zakah is due upon collection, covering the past period. This is the opinion of Al-Thawri and Abu Ubayd, based on a narration from Ali regarding doubtful debt, stating Zakah should be paid upon collection for the past period if the debtor is truthful. This is also supported by a narration from Ibn Abbas. The argument is that since it is owned property that can be disposed of, Zakah is due for the past period, like a debt owed by a solvent person.
Supporting text
Al-Shafi'i holds two opinions mirroring the two narrations. 'Umar ibn Abd al-Aziz, Al-Hasan, Al-Layth, Al-Awza'i, and Malik maintain Zakah is due upon collection for one year only. The definitive position asserts that since the condition of the asset remains constant regardless of the debtor's situation (insolvent, denying, or delaying), the ruling on Zakah should be consistent, similar to all other wealth, without differentiation based on whether the denial is only apparent or also internal.