Paying debts through a Riba-based restructuring program
26-10-2009 | IslamWeb
Question:
Salam alaikom. I am new muslim from Finland Al-hamdulillaah. Before islam i had busines, it was haram and i have take loan with riba for that. After i became muslim and get knowledge that its haram, i sold company, but for me stayed much dept. I was without work sometime after. Dept what stayed has grow now becouse of riba one third bigger, and still growing with 9.5 % every year. Now i am working, but recovery of a debt by an enforcement order (government) is taking from my salary part and put it for paying those depts with riba. So now i dont know what to do, i have also possibility to get in debt restructuring program (5-8 years) to pay my all depts with other loan with 2,5 % riba. ? What i can do for that dept, they dont let me pay only part without riba? Also i have been thinking sometimes to get away from Finland but i dont know if its right also? I have three childrens, al-hamdolillaah, and i need to get food for them also. If i am not working or studying government helps. But then my dept stays growing.? Please help with this hard situation. Jazaakumullaahu khairan.
-yazid
Answer:
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
First of all, we thank and praise Allaah Who guided you to Islam and we ask Him to make you firm and steadfast on His Religion until the Day you meet Him.
We advise you to seek beneficial knowledge, perform good deeds and befriend righteous and pious men, as these are the best things that help a Muslim remain steadfast on his religion.
As regards your question, it is not permissible for you to participate in this programme that gives you a loan with Riba (interest and/or usury) in order to repay your debts and you should only pay the original debt without any interests if you are able to do so even by tricking and evasion as we previously discussed in Fatwa 88360. Then if you are obliged to repay your debts along with paying the interests, we hope that you are not sinful.
As for escaping from your country without paying the original debt, then this is not permissible. Rather, it is permissible for you to seek the help of Islamic Centers and the like to help you repay your debts from the Zakah money and charity donations.
Finally, you should supplicate Allaah and seek His Forgiveness while relying on Him. Allaah Says (what means): {… And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine.}[Quran 65:2-3] Allaah also Says (what means): Quran {...and whosever puts his trust in Allah, then He will suffice him.}[Quran 65:3]
Allaah Knows best.