Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
The very first obligations to be fulfilled from a deceased person's estate are the funeral and burial expenses. Following this, immediate action must be taken to settle any outstanding debts, be they "debts to Allah" (such as expiations/Kaffarat, Zakat, etc.) or debts to people, whether individuals or institutions. This is in accordance with the words of Allah the Almighty: "...after any testament he may have made or debt" [An-Nisa/11], and the saying of the Prophet (peace be upon him): "The soul of the believer is suspended by his debt until it is settled on his behalf" [Narrated by Al-Tirmidhi].
Scholars have interpreted the phrase "the soul... is suspended" to mean that it is held back from reaching its honorable station. Al-Iraqi (may Allah have mercy on him) stated: "Meaning, its fate is stayed; no judgment is passed regarding its salvation or perdition until it is seen whether the debt will be paid off or not" [Qut al-Mughtadhi, Vol.1/P.326].
Settling debts is a primary right linked to the estate and takes precedence over the rights of the heirs. If a person dies leaving behind assets—whether cash or real estate—and owes debts, those debts must be cleared first. Any remaining balance is then distributed among the heirs. Allah clarified the entitlement of inheritance by saying: "...after any testament he may have made or debt" [An-Nisa/11]. Consequently, it is impermissible for heirs to take anything from the estate before the debts are paid and any valid will (up to one-third of the remaining estate) is executed.
Imam Jalal al-Din al-Mahalli (may Allah have mercy on him) said: "It is obligatory to begin with the deceased's estate by covering the reasonable costs of funeral preparations, then the debts are settled, then the wills are executed from the remaining third, and finally, the remainder is divided among the heirs" [Kanz al-Raghibin, Vol.3/P.135].
Therefore, heirs are duty-bound to hasten the settlement of the deceased's debts to clear his liability. Debt should not be delayed because the rights of fellow human beings are based on strictness and the demand for fulfillment. However, if the creditor voluntarily agrees to delay the payment, there is no sin in doing so; otherwise, prompt payment is mandatory.
Furthermore, if immediately selling a property would result in a "gross injustice" (Ghabn Fahish) or a significant financial loss for the heirs due to market conditions, it is acceptable to ask the creditor for a delay until a fair price can be obtained.
In conclusion, the heirs must take the initiative to settle the deceased's debt immediately after his passing—even if it requires selling the house. Delaying is not permitted unless the creditors consent to it. Since the creditors in this case are waiting for the court’s decision, their waiting implies their consent to defer the settlement until that ruling is issued. And Allah the Almighty knows best.
