https://muftiwp.gov.my/en/artikel/al-kafi-l...e-faraid-system

It is not required legally or religious perspective to pay off deceased debt.

All is required by religion is to pay all the debts with property / estate before distributing the remaining. If there’s insufficient, even mufti say not required.

Unless you’re planning to gain extra pahala, but I still think it doesn’t make sense financially to add this burden when neither religion nor legal is asking for it. But… if you insist no one can convince you otherwise.

My 2 cents… don’t do it if need to go to akpk. And you don’t need to make this decision now since there’s no need legally or religion wise after using all assets under deceased name. Can just use all assets and stall the rest until you have a clear mind and all the rest is settled. RIP for deceased.

As a daughter and a Muslim, it is my responsibility to help him settle the debt. But the amount is too big for me to settle it in a lump sum. I seriously don't know how to start. Should I approach akpk for help?

Not sure if you’re trolling or have comprehension problem.

She is trying to bear her late father’s debt on herself by going to akpk / bank to refinance the debt on herself. Hence it will affect the daughter credit rating when she legally sign to have all these debt transferred to her while using akpk. When it’s not required legally.

Religion has thing to do with it because she is saying it’s her responsibility as Muslim daughter to help him settle hence I included mufti’s response in my last post.

This post has been edited by LaiN87: Dec 21 2023, 01:25 PM

Then the direction is clear.

Summary:
- debt is a lot and hard to clear under your name in order to keep the house.
- house is under late father’s name and fully paid off.
- house value sufficient to cover for debt
- insist on keeping the house and not selling.

Best Direction I believe:
- Complete the house name transfer as per procedure. Shouldn’t need much legal fees for this.
- Mortgage the house, then use the amount to lump sum to clear the loan.
- it’s better to use house loan rather than any personal loan or akpk. Use flexi or semi flexi loan to reduce interest rate after using and ensuring all debt is cleared. Extra cash loaned dump in back to the loan account.

Query:
- how Muslim divide the property. After dividing, is there issues trying to get house loan mortgage with so many parties involved.
- will the official process allow for property to be transferred with debt still active. (Is it allowed religion wise)
- will TS have enough credit to allow property mortgage to cover the full debt amount. (Or will even TS be part of the name of the owner of the property to have a mortgage under her name)

This post has been edited by LaiN87: Dec 21 2023, 03:51 PM