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The question

What is the ruling on purchasing debt guarantees for a value less than the original debt, and benefiting from the full debt after winning the case, knowing that winning the case is not certain?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The aforementioned transaction is void for the following reasons:

1. It involves Riba al-Fadl (usury of surplus) and Riba al-Nasi'ah (usury of delay), as the buyer pays less to receive more of the same kind after a period of time.

2. (excessive uncertainty), due to the possibility of inability to deliver the debt requested by the new buyer.

3. Lack of immediate possession (taqabud). Checks are not actual possession, and immediate possession is a condition for the sale of paper currencies, by analogy with gold and silver.

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Where this answer came from
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Ftawy
Original fatwa ID
34292
Imported
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