The Effect of Debtor Death on his/her Deferred Bank Debt

Abstract: This study tackles the effect of the debtor death on his/her deferred bank debt according to religion considering the disorder in his/ her obligation towards the creditor and the deletion of part of the debt (share from profits) or the complete deletion of the debt. Hence, in case of death the debt might be documented in a warrantee, or heirs will be committed to the debt payments, in comparison with the case of early repayment of debt. This study aims to clarify the rules on discounting part of the profit that the deceased should have paid - when signing the contract, if the heirs pay it from inheritance as the jurists said: time has its share from the price including other duties that caused the increase in the amount and ultimately required to go with payments. The problem statement of this study is to investigates the discount of the value of the debt as it is being fully paid from the deceased inheritance, or the debtor is decided to pay the debt in a very systematic way before deadline. The research did a Jurisprudential analysis for these cases and was connected to the theory of the timing on economical basis. This study has so far concluded that if the deceased had deferred bank payments then in this case there has to be three cases: the debt is documented through a warrantee or a sponsor who would pay the debt either way the debt stays deferred. In case the debt was not documented in a warrantee or through a sponsor then the successor pay the debt from the deceased heir. Otherwise, in the Zakat Fund of the Bank of debtors on its own terms, and that the payments maybe covered in certain conditions, and that is dropped from the profits which have been calculated.  According to Ebn Abbas, in case a debtor wanted to pay all his/her payments but just to deduct a value from the profit. In comparing this to a deceased debt, the same rules apply as well. The formation of an insurance fund will assisted in paying off the debt and the profits in case the debtor is deceased. In order to face the obstacles of not paying the debt, the contract in the bank is changed to illegal debts, here the insurance fund as a third party is illegal. In case the deceased is poor and the debt cannot be covered, the Zakah fund will pay the debt as an alternative but this is conditional. In case the deceased did not documented his grant with s sponsor and the heirs did not accept to pay the debt, part of the benefits should be deducted as the Zakah fund will be covering the debt and in this case no need for the insurance fund to cover the debt as it will be illegal.

Title

مجلة دراسات الشريعة والقانون الجامعة الأردنية

Publisher

الجامعة الاردنية

Publisher Country

Jordan

Publication Type

Both (Printed and Online)

Volume

41

Year

2014

Pages

1441-1472