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Text and translation
English translation
2415. It was narrated from Abu Hurairah that if a believer died at the time of the Messenger of Allâh ﷺ and he had debts, the Messenger of Allâh ﷺ would ask: "Did he leave anything with which to pay off his debt?" If they said yes, then he would offer the funeral prayer for him, but if they said no, then he would say: "Pray for your companion." When Allâh granted His Prophet the conquests, he said: "I am nearer to the believers than their own selves. Whoever dies owing a
debt, I will pay it off for him, and whoever leaves behind wealth, it will be for his heirs.” (Sahih)
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Commentary
The Noble Prophet's declining from offering a debtor's funeral prayer was a sort of warning for the people and showing the gravity of this sin.
If someone dies as debtor and his heirs are poor and cannot pay his debt, it should be paid by the State from the public treasury.
