Is Zakat obligatory on the entire amount owed, or only on the part of it that has been repaid, and does this include what has not yet been paid when the Hawl (Zakat year) is due?

Zakat is obligatory on a debt, whether it is due immediately or deferred, and whether the debtor is solvent or insolvent. However, the method of its disbursement differs depending on the nature of the debt:

- If the debt is immediately due from a solvent and compliant debtor, then Zakat is obligatory on it every year, as it is considered as if it is already in possession. - If the debt is owed by a procrastinator or an insolvent person, or if it is deferred, then Zakat is not obligatory on it every year. Rather, one waits until it is collected, and then pays Zakat on it for all the past years. Some say that Zakat is paid for one year only.