Subject of Debt?

[`Yousef]

If for example, one party owes the other party a certain sum of interest. If the party who is owed agrees voluntarily to reduce the payable amount, is it alright for the person to pay that sum, if ofcourse the party to be paid agrees to it?

[aamirsaab]

If for example, one party owes the other party a certain sum of interest. If the party who is owed agrees voluntarily to reduce the payable amount, is it alright for the person to pay that sum, if ofcourse the party to be paid agrees to it?

You should really just pay what is owed - as in, the exact amount. What you are essentially referring to, in your question, is a discount on a loan. From what I know, there's nothing wrong with it Islamically (i.e it isn't haram), as it is actually the opposite/reverse of interest. Businesswise though, it's a pretty poor move (you are giving a discount to someone who OWES YOU MONEY)

[`Yousef]

I was talking about someone paying me, He owes me a sum of £95 but I was willing to let go of £80 because It's taking too much hassle.

[aamirsaab]

I was talking about someone paying me, He owes me a sum of £95 but I was willing to let go of £80 because It's taking too much hassle.

Erm, yeah. That'd be allowed. Though, I'd recommend you let him pay you the full amount but in installments (but that's just my opinion).

Islamically speaking, there is nothing against you giving him 15 quid off (or any amount for that matter). If anything, it's count as an act of mercy - you're reducing the debt!