Scholarly Insight: In Islamic Jurisprudence (Fiqh), wealth must meet the condition of complete ownership and freedom from the rights of others to be subject to Zakat. An immediate debt is considered a right belonging to the creditor. Therefore, the debtor does not have full, unencumbered ownership of the wealth tied up in that debt. If deducting the immediate debt from the total savings drops the remaining balance below the Nisab (the minimum threshold), the Zakat obligation is completely waived. However, scholars note that long term, deferred debts that are paid in small installments do not necessarily exempt the entire wealth from Zakat, but only the immediate installment due.