How does one who has a debt and owes a debt pay his zakah?

The questioner : Peace be upon you.

The Shaykh : Peace be upon you.

The questioner : May Allah keep you in good health, O Shaykh. I have two questions; may Allah be pleased with you. Yes. The first question: A man owes a debt and is owed a debt; how does he pay his zakah? Yes.

The Shaykh : In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, his Companions, and those who follow them in excellence until the Day of Judgment. As for the debt that is owed to him, if it is from a wealthy person who is not delaying payment, then its zakah is due every year. However, he has a choice: if he wishes, he may pay the zakah along with his other wealth, or if he wishes, he may delay it until he collects the debt, and then pay the zakah on everything that has passed. If the debt is from a person who is unable to pay, there is no zakah on it unless he collects it, in which case he pays zakah on it for the year of collection only. This is regarding the debt that is owed to him. As for the debt that he owes, it does not prevent the obligation of zakah. Zakah is obligatory on the wealth in his possession, even if he owes a debt, because the stronger opinion is that zakah is obligatory on wealth even if its owner is in debt, due to the generality of the evidence. Some scholars said that there is no zakah on him.
on what corresponds to the debt. But that is an opinion that contradicts the apparent meaning of the evidence, and it is obligatory to rely on the apparent meaning of the evidence.