Fatwa No : 82165

Respected Sir, Assalamu Alaikum,After extending my greetings, I wish to state that my husband passed away one year ago. During his lifetime, he purchased a plot of land and, in the process, borrowed money from three to four individuals. He was also unable to pay approximately two (2) lakh rupees to the plot’s original owner. Now, all the lenders are demanding their money back.
My husband had also taken out an insurance policy during his lifetime. The insurance money has now been deposited into our bank account. Out of this, only sixty thousand (60,000) rupees belong to us, while the insurance company has transferred a total of two lakh sixty thousand (260,000) rupees into our account.
We only wish to take what is rightfully halal for us and plan to distribute the excess funds among the poor, without any intention of earning reward (sawab) from it. However, the problem is that the creditors are no longer willing to wait and are insisting on being repaid under all circumstances.
Apart from the plot, we also own a shop that we have been trying to sell for the past year. Unfortunately, we haven’t been able to find a buyer in all this time. Our plan was to sell the shop and repay the lenders with the proceeds. But no one knows when the shop will eventually be sold, and the creditors are no longer willing to wait.
One of the creditors is getting married next month, in June, and for this reason, he is urgently demanding repayment of his loan, which is around six lakh rupees.
Therefore, I humbly request to ask: Can we use the extra two lakh rupees from the insurance money temporarily as a loan to repay the creditors? Once the shop is sold, we will then donate the entire two lakh rupees to the poor so that we can settle the debt for now and resolve this major issue.
Does Shariah permit using this money under such circumstances? Is this permissible according to Islamic law?

الجوابُ حامِدا ًو مُصلیِّا ً

If the statement of the situation in question is indeed true and based on reality, then:
Firstly, if there is no other means available to immediately repay the mentioned debt except this money, and the creditors are unwilling to grant any further extension;
Secondly, if it is intended that once the shop is sold and financial ease is attained, the entire amount that is currently used from the insurance money will be given in charity,
Then, in such a case of necessity, there is a permissible allowance in Shariah to repay the due debt using this money.
However, it will then become religiously obligatory (wājib) to donate the equivalent amount from the proceeds of the shop’s sale or any other lawful source afterwards, and it must not be delayed or avoided.

مأخَذُ الفَتوی

كمافی مسندأحمد: عن عبد الله بن مسعود قال: قال رسول الله - صلى الله عليه وسلم۔ "إِن الله قسَم بينكم أخلاقَكم، كما قسَم بينكم أرزاقكم، (إلی قوله) ولا يَكْسب عبدٌ مالاً من حرام فينفقَ فيه فيباركَ له فيه، ولا يتصدق به فيقبلَ منه، ولَا يَترك خلف ظهره إلا كان زادَه إلى النار اھ (3/ 539)
وفي الفتاوى الھندية: وفي شرح حيل الخصاف لشمس الأئمة رحمه الله تعالى أن الشيخ أبا القاسم الحكيم كان يأخذ جائزة السلطان وكان يستقرض لجميع حوائجه وما يأخذ من الجائزة يقضي بها ديونه والحيلة في هذه المسائل أن يشتري نسيئة ثم ينقد ثمنه من أي مال شاء وقال أبو يوسف رحمه الله تعالى سألت أبا حنيفة رحمه الله تعالى عن الحيلة في مثل هذا فأجابني بما ذكرنا كذا في الخلاصة اھ(5/ 342)۔