Adjusting Zakat With Money Lost In Loan Or Fraud
As a general principle, if loan was given to someone and later on the lender realizes that borrower is a deserving person and deserves a relief, then loan can be waived and adjusted against Zakat. But if the borrower has defaulted on a fraudulent behavior, then it will be considered as a loss and cannot be adjusted against Zakat. If the person is unemployed, then they have to honestly decide for themselves, whether they have become eligible to receive Zakat themselves or not. If yes, then one will not be liable to any Zakat, otherwise the above principle would prevail. Following two videos have touched on both these topics. Please refer to the video below from 1:09:14 to 1:10:28 https://youtu.be/kh-kRZP6g1U?t=4154