Is it permissible to accept a seller's condition of increased interest on the overdue installment price to avoid referring the promissory notes to the Public Prosecution, knowing that the original increase in the initial price was impermissible (haram)?

There is no harm in selling by installments, even if the price increases. And whoever is in debt and cannot repay it, must be granted respite until a time of ease, for Allah Almighty says: (And if there is one in adversity, then grant him a respite until a time of ease). It is not permissible to imprison the one in hardship, nor is it permissible to grant him respite in exchange for an increase, for this is the very usury of Jahiliyyah. If you know that the Public Prosecution will rule to imprison you, it is permissible for you to avert this injustice by agreeing to the increase requested by the seller, for Allah Almighty says: (And He has explained to you in detail what is forbidden to you, except that to which you are compelled). Necessities permit prohibitions, this is if you have no other money to pay off the debt. And the seller should be advised and reminded of the impermissibility of usury.