Abstract :
Debt offset is an important way to settle issues relating to rights and obligations. This process requires transferring money from one party to another, which may entail additional expenses and any other related risks. The discussion can be found either under Islamic law or positive law. When it comes to rights, such rights are divided into several categories depending on different considerations under Islamic jurisprudential discourse. In this research, a focus is given on debt settlement as one of personal rights. The discussion is also emphasized on the extent of permissibility in doing debt clearing. It is found through this research that Muslim jurists allowed the debt offset settlement based on debts in the personal capacity but not when the debt is in-kind. This is because the debt can be paid by the same value that is fixed in the custody of the party. However, the debt in-kind cannot be cleared unless with a specific item. This research employs a descriptive approach that evaluates (i) different categories of rights, and (ii) debts. By using analytical and comparative approaches, the permissibility of debt settlement is discussed. Additionally, it also concerns about definitions of rights and debt settlement.
Keyword :
Offset, Obligations, Personal rights, In-kind rights