Debt rescheduling for increment is clear Riba
23-12-2010 | IslamWeb
Question:
Salam Alyquom, I bought a bus from a friend and he financed it on 10 years with 9% charge on the original price ( the original was 120,000.00 and will be paid as 182,000.00 over 10 years)we have to write the words interest to be legal in USA.Then I bought a house from the same friend for 180,000.00 to be paid on 10 years withe 7% interest. No late fees at all. Now I have 2 years left to finish the bus payments and 7 years to finish the house payment,but my income declined by about 40% and I can not make the payment.can I add the balance of the bus to the remaining balance of the house and recalculate the payment to be payed on new 10 years term with 7% which will reduce my monthly payment and help me pay on time even that will increase the amount which I will pay over the new 10 years by around 26,000.00.My friend is worried if that has reba deal in it or not, for me I am in very bad shape and this is hard shape case ( darorah)and I have no alternative. Please let us know.
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.
There is some ambiguity in your question, but if you had bought the bus directly from your friend with a higher price than its actual price on the condition of paying this amount by installments over a fixed period of time without charging you extra money for the delay in payment, then this sale is valid. However, if your friend gave you the price of the bus so that you would give it back to him with interest, then this is Riba (interest and/or usury) and, in this case, both of you should repent; your friend is only entitled to his capital money without any interest.
As regards the house, it appears that you bought it from your friend with a higher price than its actual price without any interest for the delay in repayments, if this is the case, then this sale is valid.
As regards rescheduling the payments in a way that the monthly payments would decrease and the amount of debt would increase, then this is clear Riba and it is not permissible for both of you to enter this contract under any excuse of need or difficulty.
In such a case when it is difficult for you to repay the debts, what Allaah has ordered your creditor to do is to give you respite until you become able to pay off your debt or that he drops from you your entire debt or a part of it, as Allaah Says (what means): {And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.}[Quran 2:280]
Allaah Knows best.