Alms Tax: Giving Zakat to a Debtor

Practical Laws of Islam as per the teachings of Ayatullah Sistani

Ruling 1952

A person who is in debt but is unable to repay his debt – even if he has the means to meet his expenses for one year – can receive zakat to repay his debt. However, he must not have spent the loan for a sinful purpose.

-Ayatullah Sistani, Practical Laws of Islam, Alms Tax (Zakat)