Zakat on wealth which is not in my possession and on debts where I have no hope of recovering them
In the name of Allah, the most Beneficent, the most Merciful.
One of the conditions for Zakat is that the wealth has to be I ones possession and ownership for one lunar year before Zakat becomes obligatory. Therefore, Zakat would not be obligatory in this situation.
Zakat does not have to be given on debts where one does not have any hope of recovering it. However, if they are recovered in the future, Zakat will have to be given for the previous years. (Fatawa Darul Uloom Deoband p.97 v.6)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham