Does the real estate bank debt owed by the deceased to the state, which was for the purpose of building a house, fall away, considering it is from Bayt al-Mal (the Public Treasury of Muslims)?

There is no disagreement among jurists that whoever unlawfully damages any property belonging to the Bayt al-Mal (public treasury) is liable for it, and that whatever is taken from it as a loan or a borrowed item must be returned. The disagreement among them concerns the cutting off of the hand of a thief from the Bayt al-Mal; the Hanafis, Shafi'is, and Hanbalis do not cut it off due to the شبهة الاستحقاق (doubt of entitlement), whereas the Malikis and those who agree with them hold the view that it should be cut off. The Bayt al-Mal has the same sanctity as private property; therefore, whatever is taken from it must be returned and is taken from the debtor's estate if he leaves behind wealth. Otherwise, nothing is owed by him because the Bayt al-Mal settles the debts of those who have died and are unable to repay them.