No Funeral Prayer for the Indebted (Hadith No. 1983)

Bismillah.

Volume 3, Book 37, Number 488 :
Narrated by Salama bin Al-Akwa (radiallaahu `anhu)
Once, while we were sitting in the company of Prophet (sallallaahu `alayhi wasallam), a dead man was brought. The Prophet (sallallaahu `alayhi wasallam) was requested to lead the funeral prayer for the deceased. He said, “Is he in debt?” The people replied in the negative. He said, “Has he left any wealth?” They said, “No.” So, he led his funeral prayer. Another dead man was brought and the people said, “O Allah’s Apostle (sallallaahu `alayhi wasallam)! Lead his funeral prayer.” The Prophet (sallallaahu `alayhi wasallam) said, “Is he in debt?” They said, “Yes.” He said, “Has he left any wealth?” They said, ”Three Dinars.” So, he led the prayer. Then a third dead man was brought and the people said (to the Prophet (sallallaahu `alayhi wasallam)), Please lead his funeral prayer.” He said, “Has he left any wealth?” They said, “No.” He asked, “Is he in debt?” They said, (“Yes! He has to pay) three Diners.’, He (refused to pray and) said, “Then pray for your (dead) companion.” Abu Qatada (radiallaahu `anhu) said, “O Allah’s Apostle (sallallaahu `alayhi wasallam)! Lead his funeral prayer, and I will pay his debt.” So, he led the prayer.

In Musannaf ‘Abd al-Razzaaq (3/57) it says:

Ibn ‘Umar (may Allaah be pleased with him) said:

O Humraan, fear Allaah and do not die in debt, lest it be taken from your good deeds when there will be no dinars and no dirhams.

Read more about the seriousness of debt here.