He gave the debtor an amount of zakah to settle the debt he owed him
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Fatwa number ( 14659 )
Q: A person has a debt owed to him by another person, and the debtor is unable to pay the debt he owes. The period has been long, and the debtor has not been able to pay because of his inability to do so. The debtor is now, it seems, eligible for zakah. Is it permissible for the creditor to give the debtor an amount of money, for example, by a check payable to bearer without mentioning his name, so that none of the employees working for the creditor become aware of the matter, in order to preserve the debtor's dignity? Then the debtor cashes the check at the bank and pays the creditor his debt, or a portion of it. In other words, the repayment of the debt will be made from the amount the debtor received from the creditor out of zakah funds? May Allah guide you to what He loves and is pleased with, and may peace and the mercy and blessings of Allah be upon you.
A: If the creditor gives the debtor an amount of zakah to settle the debt he owes him, it is not valid; because that serves to protect the creditor's money.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: A person has a debt owed to him by another person, and the debtor is unable to pay the debt he owes. The period has been long, and the debtor has not been able to pay because of his inability to do so. The debtor is now, it seems, eligible for zakah. Is it permissible for the creditor to give the debtor an amount of money, for example, by a check payable to bearer without mentioning his name, so that none of the employees working for the creditor become aware of the matter, in order to preserve the debtor's dignity? Then the debtor cashes the check at the bank and pays the creditor his debt, or a portion of it. In other words, the repayment of the debt will be made from the amount the debtor received from the creditor out of zakah funds? May Allah guide you to what He loves and is pleased with, and may peace and the mercy and blessings of Allah be upon you.
A: If the creditor gives the debtor an amount of zakah to settle the debt he owes him, it is not valid; because that serves to protect the creditor's money.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.