Best of less08 by DR.BILAL PHILPS

Opening of the live session:

الحمد لله ربّ العالمينوالصلاة والسلام على رسول الله وعلى الكريم وعلى

لهوصحبهوستين سنة إلى يَوْمِ الدِّينِ

All praises due to Allah, and Allah’s peace and blessings on the last messenger Muhammad sallallahu 'alaihi wa sallam

; and all those who followed the path of righteousness on till the last day.

Introduction of the ETH101_less08:

This is session 8, the Best Of Islam and we are continuing to look at varieties of hadith whereby Prophet Muhammad صلّى ٱللّه عليه و سلّم such as such place, person or time is the best.

In this session 8, we are focused on debt.

Hadith 35(on debt):

In hadith 35, Abu Hurairah رضي ٱللّه عنه quotes that Prophet Muhammad صلّى ٱللّه عليه و سلّم saying that “The best of you is the one who repaying the debts”. This is collected by Bukhari and Muslim. This hadith is stated in the context so by understanding the context, the intend of the hadith can be understood.

Camel Story:

Abu Hurraih رضي ٱللّه عنهowed a man a camel of certain age when the man came to collect it, Prophet Muhammad صلّى ٱللّه عليه و سلّم instructed to give what is due to him when the Sahabah tried to look around of the camel with a similar age. They could not find one. And, the only thing, they can find is more mature and valuable camel. So, then informed they informed Prophet Muhammad صلّى ٱللّه عليه و سلّ. And, Prophet Muhammad صلّى ٱللّه عليه و سلّ instructed them to give that camel. Then, the man remarked “You have given more than what is due to me. May Allah give you more to you.” Prophet Muhammad صلّى ٱللّه عليه و سلّ said “Indeed the best of you are the one best in giving debts”.

Context of the hadith:

So, this is the context of the hadith that it is made. By giving more in return for a loan, like when somebody give you loan and you give them extra – this comes with riba so we should see of this can come understand the description of Prophet Muhammad صلّى ٱللّه عليه و سلّ.

Brief linguistic meaning of Riba:

The topic of debt is very, very big in Islam and Islamic Law. We have general definition of debt that is to be fulfilled. We call it as الدين in Arabic. This has connection with submission and humiliation. The scholars looking at the linguistic meaning of debt, الدينin Arabic and its understanding with the Islamic context, they have concluded that debtor is like a prisoner.

Various Hadith and Quran verses , other sources against debt:

Prophet Muhammad صلّى ٱللّه عليه و سلّ described about a person who died with the debt who is martyr. Heصلّى ٱللّه عليه و سل said that “Your companion is a being detained by death”. He is prisoner to his death. Islam has generally a negative view on people who have debts and in the people that are involved in debts.

In General we have commands In Quran, Surah Baqara verse 188,

وَلَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ

And do not consume one another's wealth unjustly

وَلَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ وَتُدْلُوا بِهَا إِلَى الْحُكَّامِ لِتَأْكُلُوا فَرِيقًا مِنْ أَمْوَالِ

النَّاسِ بِالْإِثْمِ وَأَنْتُمْ تَعْلَمُونَ

And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you know [it is unlawful].

We also find in Surah Nisa verse 58,

إِنَّ اللَّهَ يَأْمُرُكُمْ أَنْ تُؤَدُّوا الْأَمَانَاتِ إِلَىٰ أَهْلِهَا

Indeed, Allah commands you to render trusts to whom they are due

إِنَّ اللَّهَ يَأْمُرُكُمْ أَنْ تُؤَدُّوا الْأَمَانَاتِ إِلَىٰ أَهْلِهَا وَإِذَا حَكَمْتُمْ بَيْنَ النَّاسِ أَنْبِالْعَدْلِ

إِنَّ اللَّهَ نِعِمَّا يَعِظُكُمْ بِهِ ۗ إِنَّ اللَّهَ كَانَ سَمِيعًا بَصِيرًا

Indeed, Allah commands you to render trusts to whom they are due and when you judge between people to judge with justice. Excellent is that which Allah instructs you. Indeed, Allah is ever Hearing and Seeing.

And, in Surah Baqara verse 283

فَإِنْ أَمِنَ بَعْضُكُمْ بَعْضًا فَلْيُؤَدِّ الَّذِي اؤْتُمِنَ أَمَانَتَهُ وَلْيَتَّقِ اللَّهَ رَبَّهُ

And if one of you entrusts another, then let him who is entrusted discharge his trust [faithfully] and let him fear Allah, his Lord

وَإِنْ كُنْتُمْ عَلَىٰ سَفَرٍ وَلَمْ تَجِدُوا كَاتِبًا فَرِهَانٌ مَقْبُوضَةٌ ۖ فَإِنْ أَمِنَ بَعْضُكُمْ بَعْضًا

فَلْيُؤَدِّ الَّذِي اؤْتُمِنَ أَمَانَتَهُ وَلْيَتَّقِ اللَّهَ رَبَّهُ ۗ وَلَا تَكْتُمُوا الشَّهَادَةَ ۚ وَمَنْ يَكْتُمْهَا فَإِنَّهُ

آثِمٌ قَلْبُهُ ۗ وَاللَّهُ بِمَا تَعْمَلُونَ عَلِيمٌ

And if you are on a journey and cannot find a scribe, then a security deposit [should be] taken. And if one of you entrusts another, then let him who is entrusted discharge his trust [faithfully] and let him fear Allah , his Lord. And do not conceal testimony, for whoever conceals it - his heart is indeed sinful, and Allah is Knowing of what you do.

And, in Surah Maidah verse 1,

يَا أَيُّهَا الَّذِينَ آمَنُوا أَوْفُوا بِالْعُقُودِ

O you who have believed, fulfill [all] contracts.

يَا أَيُّهَا الَّذِينَ آمَنُوا أَوْفُوا بِالْعُقُودِ ۚ أُحِلَّتْ لَكُمْ بَهِيمَةُ الْأَنْعَامِ إِلَّا مَا يُتْلَىٰ عَلَيْكُمْ

غَيْرَ مُحِلِّي الصَّيْدِ وَأَنْتُمْ حُرُمٌ ۗ إِنَّ اللَّهَ يَحْكُمُ مَا يُرِيدُ

O you who have believed, fulfill [all] contracts. Lawful for you are the animals of grazing livestock except for that which is recited to you [in this Qur'an] - hunting not being permitted while you are in the state of ihram. Indeed, Allah ordains what He intends.

There are serious of strong commandments where we are reminded as Muslims to pay back our debts.

And, Prophet Muhammad صلّى ٱللّه عليه و سلّم used to seek refuge from debts. By saying, “O Allah, I seek refuge of you from sins and heavy debts”.

“Allahumma inni a’oodhu bika min al-ma’tham wa’l-maghram (O Allah, I seek refuge with You from sin and heavy debt).”

[Narrated by al-Bukhaari (832) and Muslim (589)]

When the companions asked him, “Why do you seek refuge from heavy debts, so often, Messenger of Allah صلى الله عليه وسلم?”.

Then, Prophet Muhammad صلّى ٱللّه عليه و سلّم replied,

”When a man in debts and he speaks, he tells lies. And, when he makes promises, he breaks them”.

This is the consequences and it is found in Sahih Bukhari and Muslim.

Furthermore, we have another narration from Muhammad ibn Jahsh رضي ٱللّه عنهin which he said that we are sitting with Prophet Muhammad صلّى ٱللّه عليه و سلّم and he صلّى ٱللّه عليه و سلّم raised his head towards the sky, then put his arm on his forehead and said” SubahanAllah, a very strict issue has been revealed to me”. Muhammad ibn Jahsh رضي ٱللّه عنهsays that there were scared and remain quiet. And, in next morning,I رضي ٱللّه عنه asked him صلّى ٱللّه عليه و سلّم “By whose hand has my soul, if a man killed in the battle for the sake of Allah , then brought back to life and then killed again, brought back to life and then killed again. And, he owed a debt; he would not enter paradise until he paid the debt”.

We also have Prophet Muhammad صلّى ٱللّه عليه و سلّم refrain from offerings funeral prayers for the one who owned two dinars.

Jabir ibn Abdillah رضى الله عنهنَّsaid that a man died amongst us, and we bath him, perfume him and shrouded him. Then, we came to Prophet Muhammad صلّى ٱللّه عليه و سلّم will you pray on him, he took a few steps and asked whether he owned debts. Then, he رضى الله عنهنّ replied “Yes, he has debt of two dinars. Upon, hearing that Prophet Muhammad صلّى ٱللّه عليه و سلّم, walked away. Then, Abu Qatada رضى الله عنهنَّ volunteered and went to Prophet Muhammad صلّى ٱللّه عليه و سلّم and said “I will pay the two dinars”. Prophet Muhammad صلّى ٱللّه عليه و سلّم said “the creditor’s right is guaranteed, and is he free from debt”. We said “yes”. Then, Prophet Muhammad صلّى ٱللّه عليه و سلّم prayed for him.

And, the following day, Prophet Muhammad صلّى ٱللّه عليه و سلّم asked, Abu Qatada رضى الله عنهنَّ”Did you make the payment?” He رضى الله عنهنَّsaid “Yes”. Then, Prophet Muhammad صلّى ٱللّه عليه و سلّم said “Now his skin has become cool for it”.

So, on the basis of this, scholars in Islam and shariah those debts should only occur in cases of necessity. If, one does not need, one shouldn’t borrow. The attitude of this type of character The one who avoid getting into debt is said,it is said by Prophet Muhammad صلّى ٱللّه عليه و سلّم “whoever dies from arrogance, cheating and debts will enter paradise”. Prophet Muhammad صلّى ٱللّه عليه و سلّم went on to say in another narration from Abu Hurrairah رضى الله عنهنَّ “ The soul of the believer will suspended in the debt until it is paid off”.

Omer Ibn Khattab رضى الله عنهنَّhad advised us to avoid debts by saying “Beware of debt as it starts with worry and it ends with war”.

So, one should not undertake debt unless there is really necessity for taking it. The scholars have placed some condition on the basis which it becomes acceptable.

They pointed out in terms of the conditions that one should only take debt if one has the intention to repay it. If one does not have the intention to repay it. This is sin and evil. This is a person planning to eat the wealth of his brother and sister unjustly. This is the same verse which we talk about in the very beginning. In Quran, Surah Baqara verse 188,

وَلَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ

And do not consume one another's wealth unjustly

النَّاسِ بِالْإِثْمِ وَأَنْتُمْ تَعْلَمُونَ

Conditions to have debt:

First Condition:

That is exactly what it is. So, one should have clear niyaat or intention to pay of the debts.

Second Condition:

Secondly, one should know that he has the ability so it is not like one has the great intention but has no means. I am taking something that which has no hope that I can repay it back but I have the intention – And this is what people say. No, this is not good; one has to have genuine intention. In order to have genuine intention, one has to see a way or means. Like, if you have job and you can see yourself paying it off. And, that is the basis with that intention. So, one should have the ability to repay it back.

Third Condition:

Thirdly, it should be something which is permissible in Islam. If, it is meant for something haram then it is not permissible to enter the debt as a result of it. In the case of debt in terms of impact of the individual and society, because is why Islam has forbid it unless there is harm in it. The harm in it affects not only the individual by putting him in disgraceful and humiliation, his mind becomes preoccupied with debt and worried about paying it off. He does not want to see the one who loan him money, when they come in a way, he goes in another way. It is humiliating situation where one can find himself in.

And, then Prophet Muhammad صلّى ٱللّه عليه و سلّم said one does so, he will end up telling lies. And, by breaking promises either to you, like telling yourself that “I am going to pay it off”. Or, we tell people lies that by setting time and date to repay of the debts and we don’t do it. This is the evil that individual bring for himself.

Negative consequences of Debt:

But, there is also harm in community wise where one enters the debt. We can either look at it in individual, or society or national level. When we look at the 3rd world countries today, the problem of it is the debt. And, of course, the root of it is the riba. The debts connecting with riba, is not halal riba anyway.

Debts, even if it is halal debts they would still be in compromising situations. And, this is how the western countries, often pulling out the 3rd world countries and they are no ruling their countries. Instead, they undermine the country’s economy and they take over their economy by putting into debt

There is well known book some years back called Confession Of Hitman. There is individual who works for American government in a big business etc and he is explaining how they will go to the countries. Then, offer the rulers the huge projects that they will pay for, and of course by putting the country into debt. If, the country refuses these offers, then they will try to pay of the individual with others in country to cue or kill him or another. If, they cannot do it then the Americans will send the paid assassinators to assassinate that individuals. And, if all fails then they will send military. All of these are three steps to identify it.

And, Iraq/Iran is the classical example of it, they offered certain things in economy but they did not agree. In fact, they want to cut the Iraqi dinar from the American dollars and connections, pin it off with dollar instead. This is huge mistake relative for itself. When, they try to assassinate him, of course he had double and too many places to hide so they could not catch him. So, they only things that were left were weapons which they drop it on people.

So, we know that this is the product/program of the western countries to control because once if you put the country in debt then you can make demands. Like, international monetary funds as doing aid to the country by doing another thing so, they will have virtual control over the country.

And, in community level, if there is a lot of debt, the community will become weak. The projects and institutions are undermined with debt.

Intention to pay it off but not able to:

This is also considering what to do when one is in debt. In terms of getting into debt, one has the intention but not to manage it off. What is the solution for this kind of situation?

Prophet Muhammad صلّى ٱللّه عليه و سلّم has said, “the one who take people wealth and intending it to repay it back, Allah will pay it form him. While for the one who want to destroy it, Allah will destroy him.”

So, if the intention is to pay it back and one is unable, then we are excused by Allahسبحانه و تعالى. But, of course, in terms of the conditions concerning of someone having the intention to do so but not doing it and they are dead .The scholars have pointed out that one had the means but not did it , though initially one has the intention but you still fall in the same category of not paying off the debts. So, if you have the means and did not leave the instruction to pay it off or you are having it but delaying to pay it. Then, you are still up in that category. Otherwise, if one find him in that situation and the debt is built up even though the person had the intention and the problems arose etc., one is unable to meet the requirements. In that case, one even before that one should resort to dua.

DUA to take refuge from debt:

Prophet Muhammad صلّى ٱللّه عليه و سلّم has taught us variety of dua and some of them are quite long while some of them are quite short. Among, the shorter ones, we have

اللهم اكفني بحلالك عن حرامك وأغنني بفضلك

Alla-hum-mak-fini bi-hala-lika Ôan hara-mika wa agh-ni-ni bi fadh-lika am-man siwak.

O Allah suffices me with what you have permitted so that I have no need which you have forbidden. And, make me dependent of means by your bounty so that I have no need of anyone beside you.

He صلّى ٱللّه عليه و سلّم told this dua to Ali Ibn Talib رضى الله عنهنّ, and when the slave seeking into where you enter into contract of his price so that he could free himself. The slave had difficulty and asked Ali Ibn Talib رضى الله عنهنّ for help in freeing himself from the debt. Then, Ali Ibn Talib رضى الله عنهنّ said Prophet Muhammad صلّى ٱللّه عليه و سلّم has taught these words to help those who are caught up in debt.

In another narration, Abu Umamah رضى الله عنهنّ saw a man sitting in the masjid and he asked him “why am I seeing you sitting in the mosque and isn’t there is time for prayers”. Then, the man replied that “worries and debts”. Messenger of Allah صلّى ٱللّه عليه و سلّم, he enters the masjid and saw Abu Umamah رضى الله عنهنّsitting and he said “Oh, Abu Umamah ,Why do I see you sitting in the mosque when it is the time for prayers”. Then, he replied, “worries and debts, O Messenger of Allah”.

Prophet Muhammad صلّى ٱللّه عليه و سلّم said “shall I teach you some dua where if you say it , Allah will take off you worries and debts?”. Then, he replied “O Messenger of Allah صلّى ٱللّه عليه و سلّم, please do”.

اللَّهُمَّ إِنِّي أَعُوذُ بِكَ مِنْ الْهَمِّ وَالْحُزْنِ وَالْعَجْزِ وَالْكَسَلِ , وَالْبُخْلِ وَالْجُبْنِ وَضَلَعِ

الدَّيْنِ ,وَغَلَبَةِ الرِّجَالِ

Allahumma inni a’udhu bika minal-hammi wal-Huzni wal-‘ajazi wal-kasli wal-bukhli wal-jubni wa dala’id-dayni waghalabatir-rijal.

[O Allaah, I take refuge in You from worry and grief, in capacitance and laziness, miserliness and cowardice, the burden of heavily debts and from being over powered by men]

[Sahih Al-Bukhari, 7/158]

So, we have dua that we can resort to seek Allah’s help in removing the debts from ourselves.

Description for people who lend loans:

Also, we have statements from the Prophet Muhammad صلّى ٱللّه عليه و سلّم with regard to those debt people who have debt. That wealth that is being owned to and, of course, when Islam teaches principles and it teaches in complete way. But, to those whose debt is hold, and how they should handle the situation. In general, those people who have wealth that is borrowed by others are encouraged to make it easy for them and not put excessive pressure on them. And, if they are able to respite or cancel the debt, it is even better.

And, Allah says in Surah Baqarah verse 280

وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍ ۚ وَأَنْ تَصَدَّقُوا خَيْرٌ لَكُمْ ۖ إِنْ كُنْتُمْ تَعْلَمُونَ

And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.

And, we know that Prophet Muhammad صلّى ٱللّه عليه و سلّم said whoever makes the hardship of other person is easy, Allah will make things easy for him in this world and in the hereafter.

Prophet Muhammad صلّى ٱللّه عليه و سلّم also has said that there is merchant who used to lend money to the people whenever he saw who could not repay and he will say to his workers to write off the debt. And, then he will say “May Allah forgive us”. And, Allah forgave him and gave him paradise.

And, in another narration from Abu Hudhaifah Ibn Mas'ud Al Ansariرضى الله عنهنّ a man died and Prophet Muhammad صلّى ٱللّه عليه و سلّم said , a man died and asked, “Why did Allah forgive you?”. He replied that “I had business transactions with people and I will write off the debts by the poor and elevate for the rich”.

3 category of people who will have no shade from Allah’s throne:

Prophet Muhammad صلّى ٱللّه عليه و سلّمalso has said “whoever gives respite to a poor person or write off the debt, Allah will put him under his shade on the day there will be no shade except from the shade of his throne”.

And, this is also means of supplications to be answered. Prophet Muhammad صلّى ٱللّه عليه و سلّم said “Whoever wants supplications to be heard or his hardships to be removed, he should remove it from the poor”.

Now, on the other hand, debts are occurred by delaying workers, people who hire workers to work for them. And, delay their wages. In another words, they have created debts unfairly. Then, Prophet Muhammad صلّى ٱللّه عليه و سلّم has said he would be opponent of such person on the Day of Judgment.

To delay the wages of laborer is something particularly evil and it is so evil that Allahسبحانه و تعالى himself declared that he will the opponent during the day of judgement.

Three kinds of people where Allah will be opponent to:

In a narration found in Al-Bukhari, Prophet Muhammad صلّى ٱللّه عليه و سلّم said from what Allah has said, it is al-Hadith al-Qudsi, “there are three people whom I shall be their opponent of the Day Of Judgment”.

“A man who is given something under my name and then betrays it.”
“A man who sells of free man into a bondage, consume the price”
“A man who hires a labor and make use of his service and then does not want to give him his wage.”

In another narration, found in Ibn Majah where Prophet Muhammad صلّى ٱللّه عليه و سلّم has said “give the laborer his wages before his sweat dries”.

As a general advice, over and above the advice to seek Allah’s help by asking dua so that Allah will help us, to clear our debts. There are more practical bits of advices that should be followed.

Practical Tips for clearing debt:

Patient:

First and foremost, if one finds that he is in debt, he or she is unable to pay. Then, we should be patient and knowing that as a test from Allahسبحانه و تعالى. We went into the situation and not with the intention of running away or conning, but with the right intentions and means to do so. But, the means we had disappeared for one reason or another.

So, what to do?

First and foremost, we have to be patient so that we don’t end up doing things that will make the situation worse. It is because when the people find themselves in difficulty, if they are not patient and not recognising that it is a test from Allah then they will become frantic. And, then they end up saying and doing things which they should not do. They may end up with making excuses, and talk about what will happen if people get into debts. And, making false excuses and telling lies , this out of fear. But, we should fear Allah and be patient. And, resort to dua to help us and Allah will help us to find a way.

Reducing expenditure(1):

But, practically, we should also help ourselves by reducing our spending habits. If, we are in debts but we are still living a high life and a very comfortable life. We have things which we don’t need but to enjoy, like only. So, we only like, enjoy them and don’t like to lose them but we don’t really need them. So, now we have to patient and sit, and say “it’s time to sell of the things, even though I am attached/liked/used/comfortable to them. I have debts which I do not want to die with. I have something which I need to take care of. So, I will sell those things and if it takes me to basics, in order to clear debt than we have to do it. It is better to be debt free and living with basics rather than living high with debts”.

Credit Card System:

And, living high with debts is what happened to the credit system here, and people are encourage with credit cards, to put yourself into debt, and put huge limit to yourself. You don’t have needs to cover it up, but In Shaa Allah you will get it. This means that you are living beyond your means. This is what the whole credit card system encourages us to do; it is to living beyond our means. So, we pile up of whole bunch of stuff which we don’t need but we want them.

Reducing expenditure(2):

Then, something goes wrong like we are sick, or losing job or whatever happened, the money which was coming and we are paying off regularly are no longer is there. And, the debts are now in our face. So, should we go around and running crying and begging. Or, do we look at realistically at our situation and should say “I have overspent to my economic means. And I have to sell it off”. And, yes, it is losses that you will not be getting the price that you are given. This is given and the most we can do is that we can get some portion of price back. And, no matter, how much we are losing, like by saying” No, No, I am losing to much, 50% or 40% or 60 % “- Regardless of the amount of wealth you have, it is ill gotten wealth once you have debt. It is not ill gotten while you are paying off until you are longer able to pay it. It is ill gotten wealth until you get rid of it.

Confrontation:

Thirdly, this is humiliating. You have to go to the creditors and tell them what is your situation is. You can’t be ducking, shying, don’t answer telephone calls so it becomes evil. People have to hunt/chase you down and that is evil position to be in. Go to them and tell them honestly that this is my situation is, and ask them “can you give me a break? Give me some time or more time. And I will intend to pay it back” .And, In Shaa Allah, if we have trust in Allah, then In Shaa Allah will help us.

Whoever fears Allah, keeps his duty to him, he will make a way for him from every difficulty, a way which he didn’t expect. As Allah says in Surah At-Talaq verse 4,

ذَٰلِكُمْ يُوعَظُ بِهِ مَنْ كَانَ يُؤْمِنُ بِاللَّهِ وَالْيَوْمِ الْآخِرِ ۚ وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ

مَخْرَجًا

That is instructed to whoever should believe in Allah and the Last day. And whoever fears Allah - He will make for him a way out

فَإِذَا بَلَغْنَ أَجَلَهُنَّ فَأَمْسِكُوهُنَّ بِمَعْرُوفٍ أَوْ فَارِقُوهُنَّ بِمَعْرُوفٍ وَأَشْهِدُوا ذَوَيْ عَدْلٍ

مِنْكُمْ وَأَقِيمُوا الشَّهَادَةَ لِلَّهِ ۚ ذَٰلِكُمْ يُوعَظُ بِهِ مَنْ كَانَ يُؤْمِنُ بِاللَّهِ وَالْيَوْمِ الْآخِرِ ۚ

وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجًا

And when they have [nearly] fulfilled their term, either retain them according to acceptable terms or part with them according to acceptable terms. And bring to witness two just men from among you and establish the testimony for [the acceptance of] Allah . That is instructed to whoever should believe in Allah and the Last day. And whoever fears Allah - He will make for him a way out

Imaan of an individual and debt:

So, we should think positively about Allah. When, we are in debt situation where it is negativity and depression, we have to come out of it by reminding ourselves who is Allah? & How is our ibaadat? The reason is that if we fall into depression then it will affect our ibaadat because we don’t feel like praying anymore. How could you get to Allah when all of these things on your head. All of it will ruin your ibaadat. So, to save your ibaadat, you have to wake up and turn to Allahسبحانه و تعالى of who he is worshipping. One who is capable who is coping me through this situation and we use duas that we spoke about to learn others, and get Allah’s help as he is promised.

In terms of actually taking loans, there are some basics that we should follow them

Debts being recorded:

First of all, it is that the loan should be recorded. That debt is being cleared and no grey areas, written up with witnesses. As, Allah has told us Surah Baqarah 282,

O you believe when you deal with each other, transactions are involved in future obligations to a fixed period of time, use them to your writings. Write them down. No matter how small or big there are, write them down. This saves problem later. And, Allah also says that it should be done in a fixed period of time. So, the time should be set. It should not be open ended like whenever you can.

Surah Baqarah 282,

يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَىٰ أَجَلٍ مُسَمًّى فَاكْتُبُوهُ ۚ وَلْيَكْتُبْ بَيْنَكُمْ كَاتِبٌ

بِالْعَدْلِ ۚ وَلَا يَأْبَ كَاتِبٌ أَنْ يَكْتُبَ كَمَا عَلَّمَهُ اللَّهُ ۚ فَلْيَكْتُبْ وَلْيُمْلِلِ الَّذِي عَلَيْهِ الْحَقُّ وَلْيَتَّقِ اللَّهَ رَبَّهُ وَلَا يَبْخَسْ مِنْهُ شَيْئًا ۚ فَإِنْ كَانَ الَّذِي عَلَيْهِ الْحَقُّ سَفِيهًا أَوْ ضَعِيفًا أَوْ لَا يَسْتَطِيعُ أَنْ يُمِلَّ هُوَ فَلْيُمْلِلْ وَلِيُّهُ بِالْعَدْلِ ۚ وَاسْتَشْهِدُوا شَهِيدَيْنِ مِنْ رِجَالِكُمْ ۖ فَإِنْ لَمْ يَكُونَا رَجُلَيْنِ فَرَجُلٌ وَامْرَأَتَانِ مِمَّنْ تَرْضَوْنَ مِنَ الشُّهَدَاءِ أَنْ تَضِلَّ إِحْدَاهُمَا فَتُذَكِّرَ إِحْدَاهُمَا الْأُخْرَىٰ ۚ وَلَا يَأْبَ الشُّهَدَاءُ إِذَا مَا دُعُوا ۚ وَلَا تَسْأَمُوا أَنْ تَكْتُبُوهُ صَغِيرًا أَوْ كَبِيرًا إِلَىٰ أَجَلِهِ ۚ ذَٰلِكُمْ أَقْسَطُ عِنْدَ اللَّهِ وَأَقْوَمُ لِلشَّهَادَةِ وَأَدْنَىٰ أَلَّا تَرْتَابُوا ۖ إِلَّا أَنْ تَكُونَ تِجَارَةً حَاضِرَةً تُدِيرُونَهَا بَيْنَكُمْ فَلَيْسَ عَلَيْكُمْ جُنَاحٌ أَلَّا تَكْتُبُوهَا ۗ وَأَشْهِدُوا إِذَا تَبَايَعْتُمْ ۚ وَلَا يُضَارَّ كَاتِبٌ وَلَا شَهِيدٌ ۚ وَإِنْ تَفْعَلُوا فَإِنَّهُ فُسُوقٌ بِكُمْ ۗ وَاتَّقُوا اللَّهَ ۖ وَيُعَلِّمُكُمُ اللَّهُ ۗ وَاللَّهُ بِكُلِّ شَيْءٍ عَلِيمٌ

O you who have believed, when you contract a debt for a specified term, write it down. And let a scribe write [it] between you in justice. Let no scribe refuse to write as Allah has taught him. So let him write and let the one who has the obligation dictate. And let him fear Allah , his Lord, and not leave anything out of it. But if the one who has the obligation is of limited understanding or weak or unable to dictate himself, then let his guardian dictate in justice. And bring to witness two witnesses from among your men. And if there are not two men [available], then a man and two women from those whom you accept as witnesses - so that if one of the women errs, then the other can remind her. And let not the witnesses refuse when they are called upon. And do not be [too] weary to write it, whether it is small or large, for its [specified] term. That is more just in the sight of Allah and stronger as evidence and more likely to prevent doubt between you, except when it is an immediate transaction which you conduct among yourselves. For [then] there is no blame upon you if you do not write it. And take witnesses when you conclude a contract. Let no scribe be harmed or any witness. For if you do so, indeed, it is [grave] disobedience in you. And fear Allah . And Allah teaches you. And Allah is Knowing of all things.

Dangerous condition of recording the debt:

This is a very dangerous condition that is whenever you can. You can end up hating people, having said to them. Whenever you can is meant to say to near future, years can go by and still it can be whenever you. You can end up hating people. You do not want to put yourself in that situation and destroy relationships with people. So, put it down clear times.

Delaying to settle the debts:

In terms of having, to set the period of time where the debts that is owned. And, a one involved in paying that debt off, can we go for umrah/hajj , can we go use the money to purchase goods which we want. Like, things which we wanted the money to be used in other than what it is meant originally. The scholars have said that we have to use the debts for absolutely our basic needs. If, we have money which is debt money, you know where we are paying back gradually, and we have to spend but we only spend for our basic needs. And, anything spends above that is not authorized and we should be giving back.

We all know that to go for Hajj/Umrah we should not have debts. This is the general principle that is being taught. But, the point is that one is paying in instalments. You are paying in instalments and the next one is not due until you come back from Hajj/Umrah then it is permissible to go even though if you have debts.

Otherwise, the money is due and it is hajj time, and you should go. Then, you need to get the permission from the person who you owe the money to before you can go or start. Otherwise, you are using the money which is not yours. You are taking the other people money and making Hajj on. This destroys the reward of your Hajj.

Condition to pay back debts with extra:

We can look at the principles of which we said as paying back. And, you are paying back with something else. We know that riba is you borrow $10 but you give back $15. And, that is clear. Riba is the extra amount on top of $10 which you borrowed is riba. So, how in the world Prophet Muhammad صلّى ٱللّه عليه و سلّم give that man a camel worth more which he borrowed. He is given back the camel with extra. Isn’t that is riba? So, what is the difference? The difference is that the extra is not stipulated. And, that’s the point. Whereas, the riba is when I am saying that “I am lending you $10 and you are giving back $15”, but, if I lent you $10 and I have not said anything in the contract that you have to pay extra. But, you gave back $15. I can take it. You are so happy that 10 was given have enabled you to do so much. You have made huge profit, succeeded so it is not burden for yourself. It is like extra profit you have made and you want to give more. You can do it and it is acceptable for you to take it.

The other side of the coin, as if you hope someone for the money It is permissible to say that you have to pay for certain date but you have all the money earlier, so you will delay it for a discounted price. Is this permissible? No, it is not. You owe the money. So, what you are trying to imply that is like threatening with a sword over his head. You are threatening that you will not pay in time. So, this is evil. In other words, you are deliberately planning not to pay the debt, so you are in sin. If, you die in sin now, you end up in sin.

Recap of the original hadith of the session:

So, going back to the original hadith of the session, one which addresses to large degree are situation here, in North America especially in west. It is whereby being in debt is common and most people are in debt. Prophet Muhammad صلّى ٱللّه عليه و سلّم has said the best of you are the best in repaying the debts. So, if you have haram debt with interest. And, you have waked up to Islam, and you know that debt with interest is haram. So, can you just cancel it off and walk away? Or, the person who converted to Islam and they have huge debts behind him. And, Prophet Muhammad صلّى ٱللّه عليه و سلّم has said, Islam will erases all the sins before it. So, the sins have erased. So, even if you have sins by having debts with interests, it is erased because of your awakening or prior coming to Islam. However, these debts so you have to pay it off. If, the Muslim societies are known to the general society that we do not pay our debts and we are known for our evil practices. Instead, what we are supposed to be known is that we are paying off debts. And, this is what Prophet Muhammad صلّى ٱللّه عليه و سلّم told and taught us. So, in this hadith in one hand, it is pointing out the characteristics of good Muslims whereby they pay off debts.

Also, it call us to general reflections of the state of debtless. With all the hadith, Prophet Muhammad صلّى ٱللّه عليه و سلّم spoke about debts, we should avoid the debt like the plague. We should avoid like the plague. And, we go into the debt if it is absolutely necessary because it is not our way. It is better to live an in rented home free home with debt then entering to mortgage. Even, if the mortgage is not involving obvious interests, it is better to stay in rent to avoid debt. In one ends up, where one dies in a state of owing money. And, owing money with interest, will become far and far worse. And, even owing money which halal, whereby it is a loan from a friend, it is better not.

Exceptional cases:

If you form some kind of way cooperation whereby everybody agrees and put the money to buy house for the first one, the second one. This is alright because an agreement is made and people’s rights are covered, if we get the house, it is MashAllah. But, we know that we are paying the money, in different situation.

Study loans:

But, as Muslim we should try to avoid debts as much as possible, and debts come from school loans. And, this is another big issue that people ask for “Can I take this loan from the government which I have to pay with interest in such and such time”. Well, once you have signed that contract of interest, even if you had paid without the interest. And, of course, it is better than to pay with the interest. But, you are still in sin. So, what to do? Work and Study. This is the way to do it. You find a job and you have the means, then study. If, you don’t have the means, do not study as you putting yourself into the debts. You have so many cases. I was watching TV program about education some time back. They are talking about study loans, and this is applicable here too. Those who study with loans till PHD, they own about $300, 000. It is a huge amount of money where they will not be able to pay it off at all. Though, they have PHD when they can pay it off these debts with taxes and interests. So, it is not by any means it is necessary. In Islam, it is by halal means that it is necessary. Haram means cannot be justified to fulfill our wants. If, we have a true or real need, and it is about life or death, then, we can look at the circumstances where the person may go into debt to stay alive. Like, so that there will be food in the table so that the children can be alive. Then, you may do that because it is survival. However, even this should be done with the intention of paying it back. Even, if you do not have the immediate means, but this is justifiable situation whereby it is about life or death. Example, when you have encountered, loss of life, wealth. So, to survive, one may take this decision. Otherwise, it is haram.

So, the basic characteristics of Muslims where he or she has debts, they will pay it off. But, the fundamentally, they avoid the debt as long it is humanly possible.

Filing the bankruptcy:

Filing the bankrupts, where one brother asked me. It is like when you are in business and it is collapsed because of financial crisis. Then, the only way out is filing bankruptcy. Then, what is involved in filing bankruptcy? It is whereby the government or bodies takes in the business to sell of your assets and do what they can. Then, in the end, they are not able to pay it off and you just walk away. Can you do that?

As a Muslim, you cannot though it is legal and the law says so. It is nice to bring up the case because the general view of us we are trained to take of the welfare. Whereby, we will take the money and we don’t work. EI or IE, where we are working in a site that we are not supposed to be working in. All of these kind stuff, it is not good. This is where the Islamic Law says not to do it. And, filing bankruptcy removes you from debt in front of Allah. Though, in the course of legal of your country, you are debt free. But, in the sight of Allah, you can’t just walk away as it remains in your shoulder.

Usage of Credit Cards:

Well, another question is arrangement with credit cards whereby you have the bank and pay off the purchases whatever you have paid, immediately. They will immediately take from your account directly.

Will that be acceptable?

It will not acceptable because if your money run out, they will still give you credit. Isn’t it right? - Even if you had given the stipulation. However, for the debit card, it is different. In debit card, you will have certain amount of money. So, if that money runs out, you cannot do anything with that card anymore and purchase anything. And, this is proper

However, for the credit card, even if you have money run out, you can still purchase so unless business requires functioning in the society for certain capacity. It is because, they will not accept other than that and they will not accept the debit card. And, you need that business transaction so you get it and use it just for that. It is not like you can use the credit card anytime. Whenever, you are dealing with fundamentally haram, and you are now excused to deal with it because of your necessity then you can only deal or use it in the degree to your necessity. Once the necessity has been finished, you cannot do anything with it, for anything and everything. And, do remember this.

Investing in Shares or Mutual Funds:

Is investing in shares or mutual funds are allowed?

If, investing in shares or mutual funds are used to produce halal products then it is allowed. However, if it is investing where you are buying or selling shares in the stock market where you can see the people are raising their hands. And, they are shouting at numbers, like sell and buy. No, this is not allowed. This is something else. This is a big gamble. This is another form of gambling whereby legitimately you look at the product and see it and but it with shares. Like, you see it go down or up, then buy it. So, there is fine line there where you shift it from buying and selling it to gambling legitimately. So, as long as you are in halal side, buying and selling, it is no problem.

Another question is you are buying and selling in company whose capital is interest based but you have gotten into that. Can you buy the shares into the company?

Even, if the product is halal, the capital of the company that you are buying into is interest based. Then, it is haram.

Ending of live session:

So, with that we close the session 8,

سُبْحَانَكَ اللَّهُمَّ وَبِحَمْدِكَ أَشْهَدُ أَنْ لَا إِلَهَ إِلَّا أَنْتَ أَسْتَغْفِرُكَ وَأَتُوبُ إِلَيْكَ

Purity belongs to You. O Allah (SWT), with Your praises, I bear witness that there is non-worthy of worship except You. I seek forgiveness from You and I repent to You.

Saturday 22 March 2014

Debt