Incurring Debt, It’s Form and Application: An Aanalytical Study | قلب الدين صوره وتكييفه دراسة تأصيلة تحليلية

Abstract

Financial transactions play a vital role in the society, therefore Islamic Shariah provided important rules to regulate financial transactions among members of the society. Incurring debt is part of the financial transactions, which lead to the sale of debt as a form of transaction that occurs in the financial landscape. Sale of debt continues to be a controversial issue among many Shariah scholars. This controversy arises from the lack of clear definition of debt, the various forms of sale of debt that takes place within the financial system, and the rational for the sale of debt. The aforementioned factors lead to Shariah scholars to base their ruling on the permissibility of sale of debt on two factors. The first factor is the financial condition of the debtor, and the second factor is the motive for the sale of debt. This research demonstrates the Fiqh principles that underpins Shariah rulings which are based on the condition of the debtor, and its effect on the permissibility of some forms of sale of debt among Shariah scholars.