The World Federation One Stop Fiqh

Ruling 2309

The debtor, creditor, and transferee must be of the age of legal responsibility (bāligh), sane (ʿāqil), and no one must have compelled them [to enter into the transfer of debt agreement]. Furthermore, they must not be foolish with finances (safīh); i.e. they must not spend their wealth in futile ways. It is also a requirement that the debtor and the creditor must not have been proclaimed bankrupt (mufallas) except if the transfer is to a person who is not indebted to the transferor, in which case if the transferor has been proclaimed bankrupt, there is no problem.