The scholars' disagreement on the issue of whether a debt exempts one from zakah or not.

The Shaykh : The scholars differed on this issue into three positions. Some said that a debt absolutely prevents the obligation of zakah. Some said that it does not absolutely prevent it. And some said that it prevents it in hidden wealth, which is gold, silver, and merchandise, but does not prevent it in visible wealth, which is livestock and what comes out of the earth. The correct view is that a debt does not absolutely prevent zakah. You have already understood that a debt is that zakah is obligatory in what? In wealth. And a debt is obligatory in the liability. So the aspect is resolved, and there is no conflict or collision. We say to this debtor who has wealth: Pay the zakah of your wealth, and your debt will be deducted from the zakah. Good.