The Ruling on Zakah When There Is a Debt

The questioner:
She says: I also have a debt, as I bought many things I need for my life. I have money that has reached the nisab and a lunar year has passed over it, but it does not cover this debt. So, should I pay zakah on it?

The Shaykh:
Yes, if she has money in which zakah is obligatory, whether in currency or other items subject to zakah, and a lunar year has passed over it, she must pay zakah on it, even if she has a debt. This is because zakah is a right of the poor in the money she possesses. Allah (Exalted and Majestic is He) says: The conditions are present in this case: it has reached the nisab and a lunar year has passed over it, so its zakah is obligatory. The Prophet (peace and blessings be upon him) did not ask people whether they had debts or not. Rather, he sent collectors and tax gatherers to collect the zakah, and he did not ask whether the owners of these assets had debts or not.
However, if he pays off the debts before the completion of the lunar year, he owes nothing on what he has paid off, and he only pays zakah on the remainder if there is a remainder. But if the lunar year has passed and he has not paid off the debt, and the money reaches the nisab by itself or by adding it to other money, then zakah becomes obligatory on it at that time because the conditions are present. Yes.

The questioner:
Does this statement apply whether the debt is greater than the money in her hand or not?

The Shaykh:
The debt is not considered at all, whether it is small or large.

The presenter:
Yes, may Allah bless you.