SETTLING OF DEBTS. (HADEETH # 19 - 20)
It is unanimously agreed by scholars that if a person dies without settling an outstanding debt, leaving no money to settle it, anyone (whether related to him or not) could pay it on his behalf, and the deceased would be absolved of the burden. The benefit from a living person to the deceased is very apparent. If the case is such and the deceased person may benefit by a financial payment, why should he not benefit by a gift made of the reward for a good action?
Hadeeth 19
Narrated Abu Huraira (Allah be well pleased with him): The Holy Prophet said, "I am more closer to the believers than their own selves, so whoever (of them) dies while being in debt and leaves nothing for its repayment, then we are to pay his debts on his behalf and whoever (among the believers) dies leaving some property, then that property is for his heirs." (Bukhari)
Hadeeth 20
Narrated Salama bin Al-Akwa (Allah be well pleased with him) : Once, while we were sitting in the company of Holy Prophet, a dead man was brought. The Holy Prophet was requested to lead the funeral prayer for the deceased. He said, "Is he in debt?" The people replied in the negative. He said, "Has he left any wealth?" They said, "No." So, he led his funeral prayer. Another dead man was brought and the people said, "O Allah's Apostle! Lead his funeral prayer." The Holy Prophet said, "Is he in debt?" They said, "Yes." He said, "Has he left any wealth?" They said, ''Three Dinars." So, he led the prayer. Then a third dead man was brought and the people said (to the Holy Prophet), Please lead his funeral prayer." He said, "Has he left any wealth?" They said, "No." He asked, "Is he in debt?" They said, ("Yes! He has to pay) three Diners.', He (refused to pray and) said, "Then pray for your (dead) companion." Abu Qatadah said, "O Allah's Apostle! Lead his funeral prayer, and I will pay his debt." So, he led the prayer. (Bukhari)