Solvent Procrastinator vs. Genuinely Insolvent Debtor
The classical fiqh draws a sharp doctrinal line between two categories of late-paying debtor, with very different consequences for each.
In practice the burden of demonstrating which category applies falls on the debtor — supported by court inquiry, asset disclosure, and where necessary expert testimony. A debtor who falsely claims hardship to delay payment forfeits the protections of the mu'sir category and is treated as mumatil.
Four Prohibited Remedies
- Stipulating financial compensation as a penalty clause
- Claiming compensation for opportunity loss / change in currency value
- Making a judicial demand for financial compensation
- Adding any amount to the outstanding debt
Five Permissible Remedies
| Remedy | How It Works |
|---|---|
| Legal cost recovery | Debtor is liable for legal and collection expenses the creditor actually incurs |
| Sale of mortgaged collateral | Creditor may sell pledged assets to recover debt; may include mandate allowing sale without court order |
| Acceleration of all installments | If one installment is missed (not force majeure), ALL remaining installments become immediately due |
| Repossession in Murabahah | If the sold asset is still available and the buyer becomes bankrupt, the seller may repossess |
| Charitable donation undertaking | Debtor donates a specified amount to charity through the institution — NOT bank income |