Dealing with Debtors and Debt..

I am in dilemma when dealing with people who owe me a debt, have passed their commitment deadline, yet fail to pay up or communicate.
On one hand, I would love to seize the opportunity of good deeds, to extend their deadline, or even just let go and forgive the debt with the intention of charity, for Allah said
 
وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍ ۚ وَأَنْ تَصَدَّقُوا خَيْرٌ لَكُمْ ۖ إِنْ كُنْتُمْ تَعْلَمُونَ
“And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay,
but if you forgive the debt it by way of charity, that is better for you if you did but know.” (Surah Al-Baqarah 2:280)

If Allah said it’s better for us – then we should dive for it!

.. But on the other hand, I also don’t want debtors to take this lightly and just assume “everything is OK”, only to land in another debt sooner or later. The matter of debt is SERIOUS stuff – even the martyr cannot enter Paradise if he is in debt! The Prophet said,

“وَالَّذِي نَفْسِي بِيَدِهِ لَوْ أَنَّ رَجُلاً قُتِلَ فِي سَبِيلِ اللَّهِ ثُمَّ أُحْيِيَ ثُمَّ قُتِلَ ثُمَّ أُحْيِيَ ثُمَّ قُتِلَ وَعَلَيْهِ دَيْنٌ مَا دَخَلَ الْجَنَّةَ حَتَّى يُقْضَى عَنْهُ دَيْنُهُ”
“By the One in Whose hand is my soul, if a man were to be killed in the cause of Allah (and died as a martyr) then brought back to life, then killed (martyred),
but he owed a debt, he would not enter paradise until his debt was paid off” (Narrated in Sunan an-Nasa’I, graded sahih)

SubhanAllah.. Even two martyrdoms would not save one from being barred from Paradise, because of his debt. This is why it is better to exert one’s utmost effort to strive to resolve his/her own financial difficulties; and the shari’ah discourages people from asking of others, as the Prophet said,

“لأَنْ يَحْتَطِبَ أَحَدُكُمْ حُزْمَةً عَلَى ظَهْرِهِ خَيْرٌ مِنْ أَنْ يَسْأَلَ أَحَدًا، فَيُعْطِيَهُ أَوْ يَمْنَعَهُ ‏”
"No doubt, it is better for any one of you to cut a bundle of wood and carry it over his back  (to sell as firewood),
rather than to ask someone who may or may not give him." (Narrated by Al-Bukhari)

Furthermore, neither do we want to encourage people in debt to take creditors for granted… “oh, I borrowed from a Muslim, so he should forgive me to give good deeds”.

This is a disrespectful attitude and shows our lack of concern for those who have acted upon kindness towards us by lending us, showing how we do not care of the possibility of them needing the money. The Prophet said:
‏ "‏ مَطْلُ الْغَنِيِّ ظُلْمٌ ‏"
“For a wealthy person to delay repaying debts, is a form of dzulm (oppression / injustice)” (Narrated by Al-Bukhari)


Furthermore, as we have witnessed many times, the state of debt is also a time when a person is most prone to tell compulsive lies and argumentation just to get him out of a tight spot. This is exactly as the Prophet had said,

“إِنَّ الرَّجُلَ إِذَا غَرِمَ حَدَّثَ فَكَذَبَ وَوَعَدَ فَأَخْلَفَ”
“When a person is in debt, when he speaks, he lies, and when he makes a promise, he breaks it.” (Narrated by Al-Bukhari)


Rather we should have the integrity and professionalism to be paying off our debt in the most timely manner; and have the honesty and transparency to communicate with the creditor, if one is in dire financial circumstance. This is the true etiquette of a Muslim in debt for the Prophet said:
‏ "‏ إِنَّ خَيْرَكُمْ - أَوْ مِنْ خَيْرِكُمْ - أَحَاسِنُكُمْ قَضَاءً ‏"‏
“The best of you - or among the best of you - are those who pay off their debts in the best manner.” (Narrated by ibn Majah, graded sahih)

So to reconcile this, we want the reward of charity and helping our brother/sister in debt to us – without the expense of the debtor taking for granted, or for deliberately ignoring their debts, or to develop negative characteristics (i.e. lying) as a result of their debt. If they are honest and transparent, and are sincerely in difficulty, then that is our opportunity to alleviate their burden by extension or sadaqah.

The verdict
Let us give the benefit of doubt - perhaps the debtor(s) forgot. (WAllahi if they understood the severity of dying with debts, they shouldn’t forget, but what to do, we are human beings.. )

So, we remind them, and may Allah open up paths of goodness for us – as a debtor to pay off in the best of ways, or a creditor with the reward of sadaqah.