Is it permissible for a poor debtor overwhelmed by debts to pay them off from zakat funds, and is it permissible for him to borrow with interest to pay them off?

Firstly: The agreement of the Mudarib (investing partner) to guarantee the capital of the Mudarabah (partnership) is forbidden (haram); because the Mudarib is not liable for the capital except in cases of transgression or negligence, and any loss is borne by the owner of the capital.

Secondly: It is permissible for a debtor to take from Zakat funds what he needs to repay his debt, as "al-ghārimūn" (the indebted) are those who owe debts. It is encouraged to seek forgiveness (istighfar) and frequently recite supplications for debt repayment.

Thirdly: It is not permissible to borrow with interest (riba) to repay debts, unless the failure to repay leads to imprisonment. An insolvent debtor is not obligated to borrow; rather, the creditor must grant him a reprieve.