Selling the compensation owed by the state for less than its value

The questioner:
The Shaykh took the question. A person had compensation from the state, so he said, "I renounce it," and did not receive the compensation. Then a man came to him and said, "I will buy it from you, but at a percentage of the amount that I own."

The Shaykh:
The ruling is that this is riba (usury or interest). This is riba and is not permissible. It is not permissible to sell debts that are in the hands of people, whether by the one in authority or anyone else. It is not permissible to sell them until he receives or takes possession of them. He should be patient until it is paid to him. If this person has a debt on him and he transfers it to what he has with the state, there is no harm in the transfer (hawalah). If one has a debt on you and you transfer it to your money with the state, that is a transfer and there is no harm. But if you say, "Come, I will sell you my right with the state; the money with the state, I will sell it to you for present money less than its value," this is riba and is not permissible. It is riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment). You say, "Come, I will sell you my dirhams with the state for fewer dirhams. Give them to me now, and you go to the state whenever they pay you, and you keep the increase." This is clear riba and is not permissible. Yes.

The questioner:
If the Shaykh is with the state and they tell him to wait and they will expedite it for him, or if he wants to help them but for less, he waives some of it.

The Shaykh:
This is the waiver. He sells absent dirhams for present dirhams that are less than them. This is riba. Yes. Or do you mean if the state said to him?

The questioner:
Yes, yes.

The Shaykh:
The state said to him, "Waive the increase and we will give you." Hmm?

The questioner:
We will give you three... and we will give you.

The Shaykh:
Meaning, he and the debtor agreed. The agreement between the creditor and the debtor was that the debtor would expedite the debt for him, but he would reduce it. The creditor reduces it. This is the issue of "reducing and expediting." There is disagreement among the scholars regarding "reducing and expediting." There is disagreement among the scholars, and one’s soul is not at ease with it. Yes.