Short answer
Yes. Delaying a debt you are able to pay is injustice, and the Prophet ﷺ said even a martyr is forgiven everything except debt. Someone who truly cannot pay is not sinful if he intends to repay and keeps the lender informed. Lenders are told to give a struggling debtor time, and forgiving the debt is better still.
Repaying a debt is an obligation that remains until it is paid or forgiven. Delaying payment when able is haram, and the creditor may take it to court. A debtor in real hardship is not sinful for the delay, but must intend to pay, pay what he can, and not spend on luxuries while the debt is outstanding.
The four schools agree on this.
Explanation
The Prophet ﷺ said: "Delay by a rich person is injustice." Rich here means anyone able to pay. He also said that a martyr killed in Allah's path is forgiven every sin except debt, and that whoever takes people's money meaning to repay it, Allah will help him repay, while whoever takes it meaning to waste it, Allah will ruin him.
For borrowers:
- Pay on time when you can. Do not make the lender chase you.
- If you cannot pay, tell the lender honestly, agree new dates and pay what you can. Intention matters.
- Cut back on luxuries while you owe money. Spending on holidays and upgrades while delaying a debt is part of the injustice.
- Write debts down, as the longest verse of the Quran commands (2:282), and list them in your will. See Quran 2:282.
- Debts outlive you. They are paid from your estate before inheritance: see What happens if a Muslim dies in debt?
For lenders, Allah says: "if someone is in hardship, then let there be postponement until a time of ease. But if you give it as charity, it is better for you" (2:280). You may not add a late fee for yourself, since that is riba: see Are late fees haram?
The Prophet ﷺ regularly sought refuge in Allah from heavy debt. Use the dua for debt relief along with a real repayment plan.
The evidence
Quran, Surah Al-Baqara 2:280
وَإِن كَانَ ذُو عُسْرَةٍۢ فَنَظِرَةٌ إِلَىٰ مَيْسَرَةٍۢ ۚ وَأَن تَصَدَّقُوا۟ خَيْرٌۭ لَّكُمْ ۖ إِن كُنتُمْ تَعْلَمُونَ ﴿٢٨٠﴾
And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.
A debtor in real hardship is given time, and forgiving is better.
Quran, Surah Al-Baqara 2:283
۞ وَإِن كُنتُمْ عَلَىٰ سَفَرٍۢ وَلَمْ تَجِدُوا۟ كَاتِبًۭا فَرِهَٰنٌۭ مَّقْبُوضَةٌۭ ۖ فَإِنْ أَمِنَ بَعْضُكُم بَعْضًۭا فَلْيُؤَدِّ ٱلَّذِى ٱؤْتُمِنَ أَمَٰنَتَهُۥ وَلْيَتَّقِ ٱللَّهَ رَبَّهُۥ ۗ وَلَا تَكْتُمُوا۟ ٱلشَّهَٰدَةَ ۚ وَمَن يَكْتُمْهَا فَإِنَّهُۥٓ ءَاثِمٌۭ قَلْبُهُۥ ۗ وَٱللَّهُ بِمَا تَعْمَلُونَ عَلِيمٌۭ ﴿٢٨٣﴾
And if you are on a journey and cannot find a scribe, then a security deposit [should be] taken. And if one of you entrusts another, then let him who is entrusted discharge his trust [faithfully] and let him fear Allah, his Lord. And do not conceal testimony, for whoever conceals it - his heart is indeed sinful, and Allah is Knowing of what you do.
What is owed is a trust that must be returned.
Sahih al-Bukhari 2287
Sahih... مطل الغني ظلم ...
"Delay by one who is able to pay is injustice."
Putting off a debt you can pay is a wrong.
Sahih Muslim 1886
Sahih... يغفر للشهيد كل ذنب إلا الدين ...
"The martyr is forgiven every sin except debt."
Debt is a right of people that is not wiped away without payment or pardon.
Sahih al-Bukhari 2387
Sahih... من أخذ أموال الناس يريد أداءها أدى الله عنه ...
"Whoever takes people's money intending to repay it, Allah will repay it for him."
A sincere intention to repay brings Allah's help.
Where the ruling is recorded
- al-Hidaya, Kitab Adab al-Qadi, chapter on imprisonment for debt. A debtor able to pay who delays may be detained by the judge until he pays.
- Radd al-Muhtar (Ibn Abidin), Kitab al-Qada', on detention for debt. The difference between a debtor who refuses and one who is unable.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.