We went to Abu Huraira regarding a friend of ours who was insolvent and he said, “This is what God’s Messenger decided about him. If any one dies or is insolvent, the owner of the goods has most right to them if he finds his actual goods.”
Al-Bara’ b. ‘Azib reported God's Messenger as saying, "A debtor is bound to his debt and will complain to his Lord of loneliness on the day of resurrection.”
It is transmitted in Sharh as-sunna. A mursal tradition is transmitted to the effect that Mu'adh was in debt and his creditors went to the Prophet who sold all his property to pay his debt, with the result that Mu'adh had nothing left. This is the wording in al-Masabih, but the only source in which I have found it is al-Muntaqa.
A man who had died in debt would be brought to God’s Messenger and he would ask whether he had left any-thing to discharge his debt. If he was told ^that he had left enough he would pray, otherwise he would tell the Muslims to pray over their friend. But when God wrought the conquests at his hands he stood up and said, “I am closer to the believers than their own selves (Al-Qur’an 33:6), so if any of the believers dies leaving a debt I shall be responsible for paying it, and if anyone leaves property it goes to his heirs.”
