💰 Family finances · #136
My late husband's car still has a bank loan balance. Should we keep paying or sell it?
First check whether the loan was covered by takaful, because it may already have been settled by his death. If it was not covered, the balance is the deceased's debt, paid from the estate before it is distributed. The heirs may then choose to sell the car, settle the balance and divide what is left. Alternatively, one heir can take over the car by continuing the payments and paying the other heirs the value of their shares. Whatever you choose, inform the bank immediately and do not let the payments fall into arrears until the car is repossessed. The Prophet ﷺ said: “The soul of a believer is suspended by his debt until it is discharged for him” (Jami' at-Tirmidhi 1078). Record every decision of the heirs in writing. See the deceased's debts.
Sources
Jami' at-Tirmidhi 1078 (sahih)