The Ruling on a Debt Waived by Its Creditors in Court

His Eminence the Shaykh: A man had many debts exceeding three hundred thousand riyals. He wrote to one of the authorities, who agreed to pay off this debt on the condition that the creditors waive one-third of it; for example, whoever was owed sixty thousand would waive twenty thousand. Then they all gathered at the court and signed the waiver. After leaving the court, they began coming to this man and asking him about the remaining debts. Did his liability cease with their waiver at the court, or is he still obligated to pay them?The Shaykh: He owes nothing.

The questioner: So, is his liability cleared?The Shaykh: Yes.

Because this man did not force them; if they had wished, they could have said: No, we will wait and take our full right. He did not force them, and it is permissible to waive part of a deferred debt or a debt one is unable to pay.And for this, the Messenger (peace and blessings be upon him) said: (They said, "We will accept less and be paid now") Also, it is permissible to damage property in order to preserve it; al-Khidr damaged the ship even though it was damage to it, but for the sake of preserving it. So this action is permissible and there is no harm in it. But please inform me, in case the matter was concluded this way, meaning they waived two-thirds of the right and accepted one-third?The questioner: And they received it.

The Shaykh: Praise be to Allah; that is from the grace of Allah.