Debt Guarantee with Compensation

প্রশ্ন · Question

Assalamu Alaikum... Our dear Sheikh and Ameer

May Allah protect you from all evil and harm, and give you
empowerment over the land soon, Allah willing .
This is an urgent question if I may. Someone owes a large sum of
money to a group of dealers. Another person offered to negotiate
with these traders and expedite payment of their rights from his own
pocket in return for lowering the value of the debt. The deductible
amount shall then be distributed after the reduction by a certain
percentage between him (mediator) and the debtor, i.e. the
proportion between the mediator and the debtor shall be divided
between them. Is this permitted? May Allah bless you and help you
in all your matters.

উত্তর · Answer

Wa Alaikum Assalam Wa Rahmatullah Wa Barakatuhu
I understood from your question that you are in debt to merchants,
and that someone wants to help you pay the debt to the merchants
on your behalf, but he put a condition that he will make a deal with
the merchants to reduce the debt value, and have a part of the
discount, for example if the debt was 10000, he will negotiate it to
bring down to 8000, and he wants to take 1000 from you, for
example, i.e. half of the reduction in return for repaying the debt on
your behalf. In other words, he wants to be your guarantee that you
will repay the debt, so he pays it on your behalf for a return from
you, which is a percentage of the discount that he can get from the
merchants.
If my understanding is correct, this transaction is not permissible
because its reality is the guarantee (Ad -Daman) that it to guarantee
the repayment of the debt on your behalf, and the guarantee in Islam
has conditions. One of these conditions is that the guarantee is not
for a compensation. But in your case, he wants to be your guarantor
in exchange for compensation. This transaction in this manner is not

permissible. The evidence for the guarantee clearly explains that it is
linking a liability to a liability, and that it is a guarantee of a
permanent right to a liability. And it is clear that there is a guarantor,
the guaranteed for, and the guaranteed to . it is clear that it does not
constitute anything in return (compensation). This evidence is what
Abu Dawood narrated from Jabir that he said :
« e عَلَيْهِ دَيْنٌ قَالُوا
َ
ب ِيَ بِمَيرتٍ فَقَالَ أ
ُ
ي عَلََ رَجُلٍ مَاتَ وَعَلَيْهِ دَيْنٌ فَأ
لََ يُصَلَِ
يَّ يَا رَسُولَ اللَّهِ
بُو قَتَادَةَ الَْْنْصَارِيُّ هُمَا عَلََ
َ
نَعَمْ دِينَارَانِ قَالَ صَل وا عَلََ صَاحِبِكُمْ فَقَالَ أ قَالَ
فَصَلَه عَلَيْهِ رَسُولُ اللَّهِ e فَلَمَّا فَتَحَ اللَّهُ عَلََ رَسُولِ اللَّهِ r وْلََ بِكُلر مُؤْمِنٍ مِنْ نَفْسِهِ
َ
نَا أ
َ
قَالَ أ
يَّ قَضَاؤُهُ وَمَنْ تَرَكَ مَالًَ فَلِوَرَثَتِهِ
فَمَنْ تَرَكَ دَيْنًا فَعَلََ
The Messenger of Allah ﷺ would not say funeral prayer over a
person who died while the debt was due from him. A dead Muslim
was brought to him and he asked: Is there any debt due from him?
They (the people) said: Yes, two dirhams. He said: Pray yourselves
over your companion.Then Abu Qatadah al -Ansari said: I shall pay
them, Messenger of Allah. The Messenger of Allah ﷺ then prayed
over him. When Allah granted conquests to the Messenger of Allah
ﷺhe said: I am nearer to every believer than himself, so if anyone
(dies and) leaves a debt, I shall be responsible for paying it; and if
anyone leaves property, it goes to his heirs.”
It is clear in this Hadith that Abu Qatada has included his liability to
that of the deceased in the obligation of a financial right that is owed
to the creditor. It is clear that the guarantee includes the guarantor,
guaranteed for, and guaranteed to, and that, i.e. the guarantee that
both agreed to, is being committed to the right of the liability
without a return (compensation). The Hadith included the conditions
of the validity of the guarantee, and its contract’s terms .
Therefore, in your case it is permissible for that man to be your
guarantor to pay off your debt, and it is permissible for him to agree
with the you ( the one with debt), but it is not permissible to get

something in return, so it is not permissible that he wants something
in return.
I repeat if my understanding of your question above is correct: this is
what I believe is the answer in this matter and Allah knows best, He
is Most Wise. But if my understanding of your question incorrect,
explain it to me further so that I can try to answer to the correct
reality, Allah willing .
Your brother,
Abu Yasin
2 Jumada Al-Awwal 1439 AH
19/1/2018 CE