The Obligation of Zakah on Debts

The Shaykh : The third type of wealth subject to zakah is debts. Debts: this refers to receivables that are in the possession of people. If the debtor is wealthy and the creditor can collect the right from him, then the debt in his possession is considered like the actual asset in the creditor's hand, and zakah is obligatory on it. However, if the debt or receivable is owed by a poor person, or by a wealthy person who is delinquent and from whom the right cannot be collected, then there is no zakah on it because the owner is unable to dispose of it.