Giving Zakat to an Indebted Trader

Question

Zayd, a businessman, has fallen into debt of fifty to sixty thousand rupees, and all his capital is gone. Now Bakr wants to help him from the zakat account. There is also jewellery worth about ten thousand in Zayd’s house. Can Bakr give the said sum to Zayd in such a situation?

Answer

The jewellery worth ten thousand in Zayd’s house presumably belongs to his wife, while the debt is owed by Zayd himself; therefore Zayd is entitled to zakat. And even if that jewellery is Zayd’s own property, it is still not in excess of basic needs; the debt is much greater than it — even then he is entitled to zakat.

Source: Fatawa Mahmudiyya

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