Can a Woman Donate Unpaid Loans to Charity After a Bank Closure?

Answered by Mawlana Ilyas Patel

Question

After a bank closes and records are destroyed, can a woman donate her unpaid loan to a noble cause like a mosque or welfare foundation instead of repaying the treasury?

Answer

In the Name of Allah, the Most Merciful and Compassionate

It is not permissible to donate the money to a charity because it is considered an unpaid loan. Although the bank does not have the records, the individual should attempt to obtain the necessary records themselves, along with an estimate of what they owe, and provide this information to the organization they choose to designate for the donation.

Money Has to be Returned to its Original Owner

As a principle, money is always returned to its original owner. [Taqi Usmani, Fiqh al-Buyu’]

I would like you to go through the valuable answers and links below. In sha Allah, you will receive guidance and direction.
Disposing Unlawful Funds
Do I Have to Return Money Donated Based on a Lie? 

I pray this helps answer your question.

[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Abdul-Rahim Reasat 

Mawlana Ilyas Patel has received traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Presently, he lives in the UK with his wife and is interested in books and gardening.