Firstly, debt is a serious matter and there are reminders about it in the Sunnah through both words and actions, such as:
– The hadith narrated by Al-Bukhari from Salamah bin Al-Akwa’ (may Allah be pleased with him) that the Prophet (peace be upon him) was brought a funeral to perform the prayer over it. He asked, “Does he owe any debt?” They said, “Yes.” He said, “Pray for your companion.” Abu Qatadah said, “O Messenger of Allah, his debt is on me.” So he prayed for him.”
– “Ahmad and Ibn Majah also narrated from Sa’d bin Al-A’thul (may Allah be pleased with him) that he said: “My brother died leaving behind three hundred dirhams and children. I wanted to spend it on his children, so the Prophet (peace be upon him) said, “Your brother is detained by his debt, so pay it off.” I said, “O Messenger of Allah, I have already paid off all his debt except for two dinars that a woman claims but has no proof of.” He said, “Give it to her, as it is a rightful claim.
– “Al-Tirmidhi reported and graded as authentic that the Prophet (peace be upon him) said, “The soul of a believer is attached to his debt until it is paid off.”
Secondly, if a person passes away while having a debt, it is obligatory to pay off the debt before dividing the inheritance. This duty falls on the guardian or the heirs. Allah says in the inheritance verse in Surat An-Nisa’: ‘Allah instructs you concerning your children: for the male, what is equal to the share of two females…..after any bequest he [may have] made or debt.’ (An-Nisa’, 4:11) “This means that the mentioned division of inheritance occurs after fulfilling any bequest and paying off any debts. Imam Al-Kasani said in his book “Bada’i Al-Sana’i”: “A debt takes precedence over inheritance, whether it is small or large. Allah says: ‘after any bequest he [may have] made or debt.”
Thirdly, the issue at hand is the subject of the question, which is if a person owes a debt to his sister during her lifetime, but he did not pay it off before she passed away, then he is obligated to pay it off to her heirs. The money should be divided among the heirs according to the shares specified in the Shariah. He may also have witnesses to avoid any disagreement among the heirs. If a guardian pays him the money, then he should pay it to them. If not, then they should collect the money together and divide it among themselves according to their shares. If he knows their shares, then he should pay each one accordingly until the debt is paid off.
And Allah knows best.
Fatwa by Dr. Khālid Naṣr