The ruling on zakah regarding a debt owed by an insolvent person

Q: For the past six or seven years, one of my relatives borrowed a large sum of money from me, and to this day he has not been able to repay that amount to me due to his very difficult circumstances. He also owes debts to people other than me, and he wants to repay this amount to me but is unable to. So, is zakah obligatory on that money, and does he pay the zakah on it, or do I? And what is the method for paying zakah on that money?

A: You do not have to pay zakah on the debt owed by the insolvent person until you receive it, and then you pay zakah on it in the future whenever a lunar year passes over it, according to the most correct of the scholars' opinions.