Debts Of A Deceased

QUESTION:

A person passed away while owing money to SARS from his business. The family intends to sell out all the goods in his shop and declare him bankrupt when SARS comes to claim their money. Is this permissible?

ANSWER:

In principle, as a Muslim, if one owes someone money, then there are two options; either the creditor forgives the debtor, or the debtor must pay his debts in this world. If one does not pay his debts, then before the estate is distributed to the respective heirs, the debts of the deceased will have to be paid off first. In the queried scenario, if one legitimately owes SARS money due to some tax obligations, then this will be considered as a debt which the estate should pay off before the estate is distributed. However, if this debt oppressively imposed by SARS without any valid Shari’ reason, then you may avoid it if it will not bring to any type of humiliation to you or the Muslim Ummah.

تتعلق بتركة الميت حقوق اربعة مرتبة الاول يبدأ بتكفينه وتجهيزه من غير تبذير ولا تقتير ثم تقضى ديونه من جميع مابقى من ماله ثم تنفذ وصاياه من تلك ما بقى بعد الدين ثم يقسم الباقي بين ورثته بالكتاب والسنة واجماع الامة
(سراجی ص ٥)

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 11 Jumaadal-Ulaa 1448 / 22 October 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb