The World Federation Islamic Laws

Ruling 2316

Once a transfer of debt has taken place, the transferor and the transferee cannot annul the transfer. And if the transferee is not poor (faqīr) at the time of the transfer, even though he may have become so afterwards, the creditor cannot annul the transfer. The same applies if he is poor at the time of the transfer and the creditor is aware that he is poor. However, if the creditor does not know he is poor and realises this afterwards, then, if at that time he is not financially stable, the creditor can annul the transfer and claim what he is owed from the transferor. But if he is financially stable, then for him to have the right to rescind (faskh) is problematic (maḥall al‑ishkāl) [i.e. based on obligatory precaution (al‑iḥtiyāṭ al‑wājib), he does not have the right to rescind the transfer].1
1 As mentioned in Ruling 6, the term ‘problematic’ (maḥall al‑ishkāl) amounts to saying that the ruling is based on obligatory precaution.