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Father’s wealth purchased on credit card

Fatwaa ID: 2372


Hope MuftiSaheb is well

MuftiSaheb I have the following questions :

  1. A person’s father buys items for his son using his credit card which is in the overdraft and aquires interest.

Can the son use these items, is it 100 permissible and fine for him to use it ?

  1. A person’s father buys a car on interest based finance and gives it to his son.

Can his son use this car , it is fine , permissible ?

  1. A father buys a house on an interest based loan .

Is it permissible for the wife and children to stay in the house and is it fine ?

  1. A person after retirement , realises that he has acquired alot of debt in his credit card in the overdraft which acquired interest , he goes to the bank and declies himself insolvent , the bank is forced to to drop the amount of his debt.

Is it permissible for him to do this ? Or Does still he have to pay the full amount ?

  1. A person pays off all his interest based loans and debts on his cars house etc. , he then passes away.

Can the heirs inherit such an estate which was bought through interest based loans and finance but was payed off later on?

  1. The items bought on the overdraft credit card where the amount owed was dropped by the bank after being declared insolvent are still by the Family members.

6.1. Can they inherit these items when he passes away ?

6.2. Can they use these items while he is alive ?

Jazak Allah Khairen.

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

At the outset, we wish to avoid that interest bearing loans are haraam. A person wages war against Allaah Ta’aala and His Messenger ﷺ when he enters into such a transaction. Notwithstanding the above, an interest bearing loan does not prevent transfer of ownership. Ownership is fully transferred. A loan in itself is halaal. The interest attached to that is haraam. We wish to remind that anything connected with interest will be void of khayr and barakah. Children and spouses should advise, with wisdom, against interest bearing loans and discourage it.

Nevertheless, the answers to your queries are as follows,

  1. The son may use the items purchased for him by his father using a credit card which has now incurred interest charges. The onus of the interest is on the father, not the son. The son should make istighfaar for his father.
  2. Yes, the son may use the car in question.
  3. Yes, the wife and children may stay in said house. Upon his demise, the house will form part of his estate.
  4. If the bank writes off and waives the debt of a debtor due to insolvency, then the debtor does not have to pay it. He would be absolved of his this debt. However, if the bank does not write it off, then the debtor will be liable despite his insolvency. In most cases, it is written off.
  5. Yes. His estate, including anything purchased with interest bearing loans, will be fully inherited by his heirs.
  6. Yes. The family will inherit said items. They may also use it while he is alive provided that he allows them.

We would like to remind lastly that the foolish one is the one who destroys his Hereafter for the Dunya of others, including his own family. Life is not meant to be for comfort and enjoyment. It is okay to go through some difficulties here in exchange of eternal comfort and bliss there. Priorities need to be assessed and focused on.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

11/17/1445 AH – 05/25/2024 CE | 1106

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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