Declaring Bankrupcy due to Bad Financial Situation
Question:
I have a question that I need help with Inshallah. Is it ok to declare yourself bankrupt if you cannot keep up with past credit card bills that you no longer use. We purchased furniture with a credit plan that involved 6 months of no interest/ no payments. Now that our financial situation is not good, we are unable to pay off the furniture and so my husband would like to just declare bankruptcy. Is this OK?
Answer:
If your husband is not bankrupt, then it would not be permitted for him to lie and declare himself as bankrupt, for lying is considered to be one of the major sins. It will be necessary for your husband to pay for the furniture that was purchased.
If you are not in a good position financially, you may discuss this with the company from whom you purchased the furniture. Request them to allow you more time in order to pay off the credit. It will not be permitted to avoid paying for the furniture by declaring yourself to be bankrupt. In this way, you will be committing two sins, one sin of lying, and the second sin of not paying for the furniture.
And Allah knows best
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK