How is zakat paid on a debt that is to be settled in installments over 10 years?

Scholars have differed on whether debt precludes zakat (definition). The more correct opinion is that debt does not preclude zakat, due to the generality of the evidence indicating the obligation of zakat upon anyone who possesses a nisab (definition), and because the Prophet, peace and blessings be upon him, did not command his collectors to inquire about debts. Zakat pertains to the asset itself, while debt pertains to the liability, so neither precludes the other. There is no difference in this ruling between immediate and deferred debt. As for the public's reliance on the saying of Uthman ibn Affan, may Allah be pleased with him, "Whoever has a debt, let him pay it until you bring forth the zakat of your wealth," it is not considered a proof, for the dispute is concerning one who did not pay the debt but retained the wealth.