Musannaf Ibn Abi Shaybah

Hazrat Tawus says that when you are in debt, do not pay Zakat.

Hazrat Ata was asked whether a person who has had a debt for one or two years will pay zakat? He replied, no.

Ibrahim says that when a person is about to pay the zakat on his wealth, he should first see what debts he owes to people and set that amount aside.

Hazrat Fudayl says that you will not pay zakat on the debt that people owe you.

Hasan says that the amount and limit of zakat are known; when that amount is reached, calculate zakat on all the wealth that is present and that which is absent, and pay zakat on it. However, there is no zakat on what you owe as a debt.

Hazrat Maymoon says that separate the amount you owe (as debt) first, then whatever remains (if it equals the nisab), pay zakat on that.

Hazrat Saib bin Yazid narrates that I heard Hazrat Usman saying: "This is your month of Zakat. Whoever has a debt should pay off that debt and pay Zakat on the remaining wealth."

Hazrat Shu’bah says that I asked Hazrat Hammad, “A person has some debt and also possesses some wealth; will he pay zakat?” He replied, “Yes, zakat is obligatory on him. Do you not see that he is a guarantor?” Hazrat Shu’bah says that I then asked Hazrat Rabee’ah the same question, and he also gave the same answer as Hazrat Hammad.