Can you please advise as to the rules regarding payment of zakaat when there is an outstanding debt of £10,000?

The $10,000 should be deducted from the sum of all your Zakaatable assets (cash, stock-in-trade, jewellery, etc.). If your Zakaatable assets are greater, then your Zakaat liability is 2.5% of the difference. If your debt is greater, then Zakaat is not compulsory upon you.

Being in debt is not a deterrent for having children. Allah Ta’ala has taken upon Himself the responsibility to sustain each individual. It is imperative that we instil within ourselves the conviction that Allah Alone is the sustainer.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai