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Fatwa CenterFather overburned with huge debts and can repay
Question
AsalamoAlikum After months of efforts i have found a more clearer picture of my father's business work. He is in huge debts(mix of people and bank) which he says will be paid off completely only if his business goes on smoothly for 3 to 4 years atleast without any disturbance. He has repented from interest loans but is still paying on his previous owed debts to banks. He has lost capital completely and now works in the following way he takes from the people materials on credit at an agreed higher price(above if the purchase is on cash) which does not change, prepares the order with whatever cashflow he manages and sells the order at profit. He then returns the market its money and keeps his profit for himself. the above situation seems very nice but practically there are many times a situation when his expenses exceeds his profit so his debts pile up. the problem is that i am currently dependent on him for my living and education and i have less than 2 years in my graduation. My education is relatively expensive and i have no other means of financing it. As a 21 years old person should i leave my eduaction and get into work with whatever i manage or continue to remain dependent on my father uptil my graduation given that he has alot of debts to repay and his overall expenses including mine are very high which as mentioned do sometimes exceed his earnings. it does not seem to me that he is ready to reduce the standard of living to very low and i am in deep trouble due lack of support in implementing my deen. If i decide to leave i will have to find work in my country with high school certificate which is not very much accepted as complete education. My father sometimes takes money from his friends who have high chances of being involved in Interest based jobs. My father tells me that its his issue how he manages funds. What should i do given that i am already 'Baligh' ?
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, sallallaahu 'alyhi wa sallam, is His slave and Messenger.
It is forbidden to borrow money with Ribaa (interest and/or usury) as this is helping in the consumption of Ribaa; for more details, please refer to Fatwas 86701 and 82102.
Indeed, your father did well by repenting to Allaah from such debts.
However, the sin of a Ribaa-based loan is related to the person who borrowed the money and not on the money itself; therefore, it is permissible to benefit from this borrowed money as clarified in Fatwas 102369 and 93774.
On the other hand, the method of buying and selling that you mentioned in the question, which is increasing the delayed price in comparison to the price when paying cash (at the time of purchase), is among the types of permissible sales, but the general conditions of sale should be met, in addition to defining the time of repayment by installment. Moreover, the contract must not include a term that once the repayment is delayed, the price increases, as this is a type of forbidden Ribaa.
Furthermore, it is permissible for a person to borrow money if he knows that he will be able to repay. Therefore, if your father is able to repay, then it is permissible for him to borrow money. It is also permissible for you to benefit from what he borrows.
Hence, you may advise your father to reduce the level of expenditures as this will help him to decrease his debts and repay them. Moreover, during your holidays you may look for a lawful way of earning in order to save money for your studies, and in this manner, you would have helped your father.
Allaah Knows best.
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