Can Zakat Be Given to Help Settle Debts?

Yes, Zakat can be used to help someone in debt, provided they meet the eligibility criteria. 

Islamic scholars have outlined specific conditions for Zakat recipients, including those struggling with financial burdens.

The following are the criteria for eligibility for Zakat as a debtor:

Zakat can be given to an individual burdened with debt if they meet the following conditions:

• Liabilities Exceed Assets: 

According to the Hanafi school of thought, a person qualifies for Zakat if their debts surpass their Zakatable and surplus assets.

• Inability to Cover Basic Needs:

Other Islamic scholars assess eligibility based on the Kifayah principle. This means the individual must prove that their financial obligations prevent them from affording essential living expenses. If the debt significantly impacts their ability to survive, they may be eligible for Zakat.

• Debt Must Be Islamically Lawful:

The Maliki, Shafi’i, and Hanbali schools of thought emphasize that the debt must not have been incurred for sinful activities. If a person’s debt stems from gambling, interest-based loans, or other prohibited activities, they are not eligible for Zakat. Unless they have sincerely repented.

Hence, If someone is struggling with debt and meets the Islamic criteria for Zakat, they can receive financial assistance through it. However, it is essential to ensure that the debt is legitimate and not related to prohibited activities unless the person has sought repentance.

And Allah knows best!