Is it obligatory to pay Zakat from the same saved money or from other money? Is it permissible to give a large sum, such as 3000 dirhams, to one person to pay off their debts and bills, or is it better to distribute small sums, such as 100 dirhams, to several people? Is it permissible to count a debt owed to me by someone as part of Zakat funds?

It is permissible to pay Zakat on wealth either from the wealth itself or from other funds, provided that the amount disbursed is equal to one-quarter of one-tenth (2.5%) of the wealth. It is permissible to give the entire Zakat to a single deserving individual, as it is not obligatory to distribute it among all categories (of recipients); rather, the giving should be according to need and benefit. It is permissible to disburse Zakat to a poor debtor, and after he takes possession of it, there is no harm in him using it to pay off his debt, provided that this is not a ruse to discharge the debt from Zakat funds.