Is zakah obligatory on a debt owed by a person in financial difficulty, and is it permissible to give him from the zakah so that he can repay the debt to me?

Question:
He says: Honorable Shaykh, may Allah grant you success. He says: I lent money to my partner, and we agreed that he would return this money after one year. This matter has been going on for four years, and he has not returned it to me, and he is unable to return it. He says: Is there any zakah on me for this money? And is it permissible for me to give my zakah to this partner of mine so that he can repay the debt to me again?

Answer:
And Allah (Exalted and Majestic is He) said: If you waive it, that is better. Otherwise, the least you can do is grant him a respite. As for the zakah, no zakah is obligatory on it until you receive it, because you do not know whether it will come or not. If you receive it, then pay zakah on it for one year only. As for giving him from the zakah of your wealth so that he can settle it with you, this is not permissible. This does not become zakah; it does not become zakah, because it will return to you. You intend for it to return to you, so it does not count as zakah. Yes.