Brother I have written you a few times about the same question, please help me about this problem. we are living in and have little family with two kids. I have a large amount of
unexpected debts to pay and these debts are payable to banks in the shape of credit cards and some money I owe to my family members. I am trying my best to pay these debts to banks as soon as possible. But my income is lower than my debts and at the end of each month I have to use the same money I pay back to the banks. Simply its not going anywhere from last one year.
My family members has asked me for their money a few times but they know my situation and they are understood about my case that’s why they never asked me again but they are saying I can pay them back when I have money.
These debts on my shoulders did not come because I have been spending them lavishly , or I have been involved in bad habits or gambling stuff. These debts came because I bought a house in Australia and then a few months later I realised that I am making a big mistake because banks borrowed money and interest was involved in it and at the same time I had some family issues with my wife which by the GRACE OF ALLAH, all are ok after 7 months and my family come back with me and MASHALLA we had another baby. But I end up selling my house with a big lose because I wanted to get rid of this house because of interest and my family was away because of family problems.
Now I am having problems paying my credit cards,
Some one suggested me declare bankruptcy and it is legal in and do not borrow money or pay interest in future. And ask ALLAH to forgive you (AMEEN)
Brother I have learnt my lesson and INSHALLA I will not do anything where interest will be involved – please guide me if there is any way I can get rid of this issue , also if going bankrupt is ok in Islam.
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
You may adopt any legal way of declaring yourself as insolvent. Also make tawba and Istighfaar.
And Allah knows best
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah