The World Federation Islamic Laws
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Ruling 2309

The debtor, creditor, and the 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.