Fatwa #3950616 January 2018United Kingdom
Returning a loan when the creditor cannot be found or has passed away
Question
If you owe someone money but when the time came to pay him off, you can't find him or his dead.
In this case how would you pay the debt (Karz) off?
Answer
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, if the creditor happens to pass away prior to the debtor paying his debt, then the debtor shall pay off the debt to the inheritors of the creditor[i].
If the debtor cannot locate the creditor or his inheritors, he should give the amount owed in charity on behalf of the creditor, intending the reward for the creditor[ii].
And Allah Ta’ala Knows Best
Muajul I. Chowdhury
Student, Darul Iftaa
New York, USA
Checked and Approved by,
Mufti Ebrahim Desai.