What is the ruling on the zakah of a debt owed to the creditor?

Question:
The questioner says: I read from some scholars that a person who has a debt does not have to pay zakah on this debt, on the grounds that the repayment and return of this debt may take a long time, and this causes hardship for the creditor who will pay his zakah every year. Is this correct?

Answer:
The scholars (may Allah have mercy on them) distinguished between debts. A debt owed by a solvent person who is able to pay it when you ask him for it: it is obligatory for you to pay zakah on it every time a year has passed, whether you have received it or not, because you are confident of its return to you, since it is with a solvent person. But if the debt is with a bankrupt person, a bankrupt person who is unable to pay, or a person who delays payment, and you do not know or are not sure whether it will be returned to you or not, then zakah is not obligatory on it until you receive it. Once you receive it, you pay zakah on it for one year.