If someone transfers his debt to a wealthy person, but the wealthy person only appears wealthy while not actually being solvent — will he still have to accept it? Because it is in the hadith that if someone makes a hawalah (transfer), one should accept it.

According to Sahih al-Bukhari, Kitab al-Hawalah (2287, 2288): If the next person is not in reality solvent and capable of paying (however wealthy he may appear), it is not obligatory for the creditor to accept such a hawalah.

1. The key word «مَلِيٍّ»: «مَطْلُ الْغَنِيِّ ظُلْمٌ، وَإِذَا أُتْبِعَ أَحَدُكُمْ عَلَى مَلِيٍّ فَلْيَتْبَعْ» (Sahih al-Bukhari: 2287, Sahih Muslim: 1564) — the command is not for every person, only for a "mali'" (solvent one). According to the hadith scholars and jurists, three qualities are simultaneously necessary in a mali': (a) Genuine financial solvency — actual cash/recoverable wealth; mere property/pomp is not enough if he is inwardly indebted/bankrupt; (b) Free of delaying tactics — not a defaulter or dishonest; (c) Reach and access — not so influential/defiant that demanding payment is impossible, nor in an unknown place. If even one quality is missing, he is not a mali' and accepting the hawalah is not obligatory.

2. Negation of harm: «لَا ضَرَرَ وَلَا ضِرَارَ» — Transferring (a debt) to one who is in reality insolvent is deception (ghurur) of the creditor; the Shariah does not permit it.

3. What if the reality comes to light after acceptance? The hawalah is void; the creditor will have recourse to the original debtor — reports: the decision of 'Uthman and 'Ali, may Allah be pleased with them: «لَيْسَ عَلَى مَالٍ مُسْلِمٍ تَوًى» (A Muslim's wealth cannot be allowed to perish) (Musannaf 'Abd al-Razzaq, al-Bayhaqi).

Summary: The command to accept a hawalah is only for one of genuine solvency and honesty; on merely apparent wealth the creditor may reject it and demand payment from the original debtor.

Translated from the original Urdu fatwa.