The Prophet ﷺ defined the truly bankrupt person as one who arrives on the Day of Judgment with abundant prayers, fasting, and charity. Despite these good deeds, they also brought sins involving the rights of others—such as insults, slander, theft, and violence. Their good deeds are taken as compensation for those they wronged.
Jami` at-Tirmidhi 2418 Abu Hurairah narrated that the Messenger of Allah (s.a.w) said: "Do you know who the bankrupt is?" They said: "O Messenger of Allah SAW! The bankrupt among us is the one who has no Dirham nor property." The Messenger of Allah (s.a.w) said: "The bankrupt in my Ummah is the one who comes with Salat and fasting and Zakat on the Day of Judgement, but he comes having abused this one, falsely accusing that one, wrongfully consuming the wealth of this one, spilling the blood of that one, and beating this one. So he is seated, and this one is requited from his rewards. If his rewards are exhausted before the sins that he committed are requited, then some of their sins will be taken and cast upon him, then he will be cast into the Fire."
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