Abstract :
One of the important issues in financial transactions is late payments. Each of the parties involved in the debt either the debtor or the creditor needs to address this problem. May be the debtor is unable to complete his debt payment and suffers a narrow flow of cash. While, the creditor faces possible losses arising from debt arrears. As a countermeasure, all banks have established mechanisms in managing the outstanding debt. These are known as rescheduling and restructuring. This research aims to examinethe reality of rescheduling and restructuring as a debt recovery processes. This research looks also into the discussion of Qalb al Daynas stipulated under Islamic law as debated among Muslim scholars. An aspect on the reality of the process of rescheduling and restructuring and Qalb al Daynare also presented. As a result, it is found that one of debt recovery processes contains elements of Qalb al Dayn which may affect the determination of hukm
Keyword :
rescheduling, restructuring, recovery process,qalb al dayn