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Fatwa CenterOnly the entitled authority has the right to cancel the debt
Question
I live in America. I am heavily in debt to some hospitals and universities. At times, I was able to pay some of these debts in their due time but I neglected paying them. I used to think that those people are disbelievers whom I should not pay anything. Now, Allaah The Almighty Provided me with abundant provision and I am able to clear these debts. A Shaykh in that country told me that I must pay off all the debts. When I went to clear these debts, I found that some of them were cancelled due to long time. They told me that I do not have to pay any debt. What should I do now? I fear that I will be asked about these debts on the Day of Judgment. Should I give them the money although they told me that it was written off or spend it as charity for Muslims?
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
If these institutions have a law which cancels debts after a certain period of time and the owners are satisfied with it, you are not required to pay back the debts. But, if it were only the employees who canceled the debts, or the files of past accounts are lost or any similar reason, then you are still required to pay off the debt. You should pay it to its owners clarifying that this money is a debt which you delayed in paying off because of poverty. If they absolved you of liability, you are blameless.
Allaah Knows best.
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