Musannaf Ibn Abi Shaybah

24788 - Abu Bakr narrated to us, he said: Shababa (ibn) (1) Sawwar narrated to us, he said: Layth (ibn Sa'd) (2) narrated to us from (Bukayr) (3) from 'Iyad ibn 'Abd Allah ibn Sa'd from Abu Sa'id who said: A man was afflicted in the time of the Messenger of Allah ﷺ with fruits he had bought (and his) (4) debt became great, so the Messenger of Allah ﷺ said: "Give charity to him," (so the people gave charity to him) (5), (but it did) (6) not reach (that) (7) to fulfill his debt, so the Messenger of Allah ﷺ said: "Take what you find, and you have nothing except that," meaning: the creditors (8).

It is narrated from Hazrat Ka'b bin Malik (may Allah be pleased with him) that the Holy Prophet (peace and blessings be upon him) passed by a person who owed another two awqiyah. The Holy Prophet (peace and blessings be upon him) gestured with his hand to the person and said: "Reduce one part from it." The person said, "Alright, O Messenger of Allah (peace be upon him)!" Then the Prophet (peace and blessings be upon him) addressed the other and said: "Pay him what remains of his due."

It is narrated from Hazrat Abu Salih Al-Hanafi that during the caliphate of Hazrat Umar (may Allah be pleased with him), a certain people became indebted. Hazrat Umar (may Allah be pleased with him) wrote to their governor: Postpone one third of the debt until they become solvent, forgive one third, and collect one third immediately. So they acted accordingly.