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If government has written debts off does that not mean it

Q:

My husband and I were in so much debt with loans and credit cards and the interest on these cards started to creep up …..it got above us back in 2008 and become unable to put food on table. We worked long hours etc but our outgoings became higher than incoming due to debts.
We were left with no choice but to enter an IVA where we spend 5yrs paying an amount towards the debt and after 5yrs the government writes 75% of the remainder debt off.
I have been reading into the Islamic rulings and am confused.
Will we still need to pay all the debt (original amount off) at some point in our lives even after the IVA has finished?… as I have read somewhere debts will never be forgiven..if the government has written these debts off does that not mean it’s forgiven?
And if at some point in our lives, we have money to pay the original amount is that what we need to do?.. even if this means at an old age.. even though the government has written it off?

A:

Salamun Alaykum

Thank you for your query.

If you had taken loan from a person and then adopted IVA, then in this case if the government pays him it has another ruling and if the government doesn’t pay him back then the different ruling applies as follows:

  1. If the government has settled your debts on your behalf, then you are not obliged to pay anything.
  2. If the government does not pay and the claimant is not satisfied, then you must pay the entire debt to him. But if the creditor(the one who gave you the loan) is satisfied and doesn’t want the money back and forgives the remaining amount, then there is no problem and it is not wajib on you to pay back.
  3. However, if the debts remain unsettled, you are indebted and should fulfill your obligations by paying the debt back to the person you have taken a loan from.

May Allah(swt) grant you success

Wassalam,

Syed Haider