Is it permissible for us to settle the principal debt owed by the deceased through a corporate lawyer? And should we pay the interest if the company owners insist on it, or if communication with the heirs is not possible? And what should we do if the company is indebted and the payment funds will go to its creditors?
The deceased's debt must be paid from their estate before its distribution, as Allah states: "after any bequest has been fulfilled or any debt paid." This refers to the principal debt, excluding unlawful usurious interest, as it is not an obligation upon the deceased, and paying it would be aiding in usury. Sheikh Al-Islam Ibn Taymiyyah said: "The usurious increase is to be dropped, and one should revert to the principal."
If it is impossible to reach the heirs of the deceased creditor, then charity should be given on their behalf, with a guarantee to them should they be reached later and not be satisfied with the charity. If the deceased left no wealth, and the heirs voluntarily pay off their debt, this is among the greatest acts of righteousness towards them.
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