ANSWER:

This is not permissible as there is a clear conflict of interest here.

Give him your zakat if he is poor or needy but you can’t cross out his debt from zakat money! 

My friend owes me some money and his financial condition is now in so bad shape that he cannot repay my money. Now I want to excuse him from giving me my money and want to treat this as zakat. Can I do this ? To qualify as zakat do I have to again give him money to repay me his dues ?

Loans, Zakat |