Is it permissible to consider the debtor as "ghārim" (one in debt) eligible for zakat, if he owns assets (a registered house, a share in the family home, a car) that he cannot sell to pay off his debt due to war conditions, and the creditor demands cash?

"Al-Gharimun" (the indebted) are those who owe debts they cannot repay. They are among the categories eligible to receive Zakat, as stated in the Quran: "and for the indebted" (wal-gharimin). Al-Qurtubi mentioned that Al-Gharim is one who is burdened with debt and has no means to repay it, except for someone who incurred debt due to foolishness. A condition for giving Zakat to Al-Gharim is that they must not be able to repay the debt from wealth exceeding their needs. If they own properties that they cannot sell currently due to market stagnation or war, and they cannot find anyone to lend them money, then they are considered Al-Gharim and are eligible for Zakat to pay off their debt.