Q: I lent some rich individuals a certain amount of money, however, they became poor and insolvent and now cannot repay the debt they owe me. In fact, some of them are declared bankrupt. Their relatives and some trustworthy people testify that they are insolvent. Is it permissible for me to waive my debts due on such insolvent persons and deduct them from the Zakah (obligatory charity) I am liable for? Please be informed that I defaulted on Zakah many years because of debtors defaulting on repayment that caused me cash flow problems. Answer us, may Allah benefit you. Should we apply to this case the ruling derived from the Ayah (Qur'anic verse), Surah Al-Baqarah, 2:279, that reads: 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 remit it by way of charity, that is better for you if you did but know. Sadaqa Allah-ul-`Azhim (True are the Words of Allah, the Ever-Great). As-salamu `alaykum warahmatullah wabarakatuh (May Allah's Peace, Mercy, and Blessings be upon you!) (Part No. 8; Page No. 387