If the creditor gives his zakah to the debtor because he is in debt, is that sufficient?

The questioner : If the creditor gives his zakah to the debtor because he is in debt, is that sufficient?

The Shaykh : It is sufficient, provided that he considers it as zakah and the debtor accepts it.

Another questioner : Even if the debtor is not able to pay it back.

The Shaykh : That is not assumed. We say on this occasion that the scholars divide debt into two categories: living and dead. If the debt is living, then this is the answer. But if it is dead, then it is not.

Another questioner : Explain to us the difference...

The Shaykh : That is, if the creditor has lost hope of recovering his debt, it is not permissible to consider that debt as zakah, even if the debtor is pleased with it. But if the relationship between the creditor and the debtor is still normal, and he is convinced that the debtor is eager to pay, but circumstances have arisen for him, then the previous answer applies.