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Costs for Debt Recovery

Answered as per Hanafi Fiqh by CouncilofUlama.co.za

Q: If I have to get someone to come and demand money that you owe me as it seems you are not prepared to pay me I can charge for that 3rd person’s fees because, but for your refusal/failure/negligence to pay, I would not have incurred that cost, and surely it is payable given the fact that despite demand I now have to secure this method to get my money from you?

A: According to Shari’ah if a debtor is by the means to pay and he deliberately withholds payment thereby forcing the creditor to resort to legal action to recoup his debt, then it will be permissible to claim from the debtor whatever legal costs were incurred in the recovery of the debt.

However this will not be permissible in the case where the debtor is hard-pressed and in such financial straits that he is incapable of paying back the debt immediately. (Azeezul Fataawa, Fataawa Darul-Uloom vol 2 page 654)

And Allah knows best.

Aadiel Moosagie (Mufti)
Council of Ulama Eastern Cape
+27 83 982 6968
[email protected]
www.councilofulama.co.za
@UlamaCouncilEC

This answer was collected from CouncilofUlama.co.za, which is operated under the supervision of Council of Ulama Eastern Cape, South Africa.