Reference: http://www.alfawzan.af.org.sa/node/15368
Question: [Regarding] the one who dies whilst being unable to settle a debt due to his poor circumstances, does his soul remain suspended [due to this debt]?
Response: Without a doubt, the debt remains attached to the soul of the believer, as [mentioned] in the hadeeth:
«The soul of the believer is suspended because of his debt until it is paid off» – at-Tirmidhee
And if he were to die whilst having a debt, then it [continues to] remain his responsibility; so whoever is aware of this situation from his relatives and his Muslim brothers, then he should absolve [the deceased of] his responsibility and extend a favour to him – and not leave his soul suspended (i.e. detained and kept from reaching its destination) due to his debt.
