Chapter: The Rulings of ḥawāla (assignment of debt)

Linguistically, ḥawāla is derived from taḥawwul, “to transfer,” because it shifts a debt from one liability to another. For this reason the jurists define it as the transfer of a debt from one person’s liability to that of someone else.

Its legitimacy is established by the Sunnah and by scholarly consensus. The Messenger ﷺ said, “If one of you is referred to a solvent person, let him accept the referral,” and in another wording, “Whoever is directed with his right to a solvent party, let him follow the direction.” More than one scholar has reported unanimous agreement on its validity.

ḥawāla brings ease to people, facilitates their dealings, encourages mutual tolerance, cooperation in meeting their needs, settlement of their debts, and provides them with relief.

Some have assumed that ḥawāla does not accord with legal analogy, claiming that it amounts to selling one debt for another, and the sale of a debt for a debt is forbidden; yet it was deemed permissible in ḥawāla despite not conforming