"Morally bankrupt" is an idiomatic expression used to describe an individual, group, or system that is considered to be entirely lacking in ethical principles or a sense of right and wrong. It is not a formal identification of a specific person, but rather a strong subjective judgment.
It is this form of bankruptcy that have very severe consequences for a man, specially if he is a believer and is ignorant of what harm he has brought to himself, mostly unknowingly but also knowingly as well due to one's stubbornness and prejudices.
Prophet Muhammad ﷺ has strictly advised his companions and generations to come to be cautious of acts that may neutralize their good deeds or even lead them to hell on the day of Judgement when the scale of Divine Justice will be put in place.
It was narrated from Abu Hurairah that the Messenger of Allah صلى الله عليه وسلم said: "Do you know what bankrupt means?" They said: "Among us, the one who has no Dirham nor goods is the one who is bankrupt." He said: "The one who is bankrupt among my Ummah is the one who will come on the Day of Resurrection with prayer (Salat), fasting (Saum) and Charity (Zakat), but he will come having insulted this one, slandered that one, consumed the wealth of this one, shed the blood of that one and beaten this one. They will each be given from his good deeds, and if his good deeds run out before the scores have been settled, some of their bad deeds will be taken and cast upon him, then he will be thrown into the Fire."
Arabic Text:
حَدَّثَنَا قُتَيْبَةُ بْنُ سَعِيدٍ ، وَعَلِيُّ بْنُ حُجْرٍ ، قَالاَ : حَدَّثَنَا إِسْمَاعِيلُ ، وَهُوَ ابْنُ جَعْفَرٍ ، عَنِ الْعَلاَءِ ، عَنْ أَبِيهِ ، عَنْ أَبِي هُرَيْرَةَ ، أَنَّ رَسُولَ اللهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ ، قَالَ: أَتَدْرُونَ مَا الْمُفْلِسُ ؟ قَالُوا: الْمُفْلِسُ فِينَا مَنْ لاَ دِرْهَمَ لَهُ وَلاَ مَتَاعَ ، فَقَالَ: إِنَّ الْمُفْلِسَ مِنْ أُمَّتِي يَأْتِي يَوْمَ الْقِيَامَةِ بِصَلاَةٍ ، وَصِيَامٍ ، وَزَكَاةٍ ، وَيَأْتِي قَدْ شَتَمَ هَذَا ، وَقَذَفَ هَذَا ، وَأَكَلَ مَالَ هَذَا ، وَسَفَكَ دَمَ هَذَا ، وَضَرَبَ هَذَا ، فَيُعْطَى هَذَا مِنْ حَسَنَاتِهِ ، وَهَذَا مِنْ حَسَنَاتِهِ ، فَإِنْ فَنِيَتْ حَسَنَاتُهُ قَبْلَ أَنْ يُقْضَى مَا عَلَيْهِ أُخِذَ مِنْ خَطَايَاهُمْ فَطُرِحَتْ عَلَيْهِ ، ثُمَّ طُرِحَ فِي النَّارِ.
Traits of a morally bankrupt person
Before we expand the meaning of the hadith, let us try to understand the traits of amorally bankrupt person. A person described as morally bankrupt typically exhibits the following characteristics:
- Self-interest above all else: They consistently prioritize their own needs and desires, even if it means harming others.
- Disregard for ethics: They are aware of moral principles but actively choose to ignore them for personal gain.
- Deception and dishonesty: Lying, manipulation, and betrayal are common behaviors, often to cover their tracks or place blame on others.
- Lack of empathy or compassion: They are indifferent or emotionally detached from the suffering and needs of others.
- Abuse of power: They may use their status or influence to make others feel small, incompetent, or foolish.
- Inability to recognize wrongdoing: Some individuals may be deep in denial and unable to recognize when they have violated core moral values, thus losing their moral orientation.
The term can also be applied to larger entities, such as governments, corporations, or cultural practices, when they are seen as having lost their ethical legitimacy or engaging in systemic injustice.
The above quoted Hadith mentioned in Ṣaḥīḥ al-Bukhārī 6579 contains one of the most powerful moral warnings in Islam, often called “The Hadith of the Bankrupt Person.” Below is a clear, structured, and authentic explanation with Qur’anic support and modern relevance.
Why Did the Prophet Ask This Question?
The Prophet ﷺ used a teaching method of asking a question and induced into the audience a reflective and thinking response. And after their response correcting their understanding. Obviously when his companions thought of the word bankruptcy, their instant response was the term related to lack of money or wealth. But the Prophet ﷺ corrected them and told them that he was referring to the moral and spiritual ruin of a person.
In the light of the above explanation, a “Bankrupt” Person is NOT someone who is poor, owns nothing or struggles financially. But in fact a bankrupt person is someone who prays, fasts, gives charity - yet harms people. This person appears religious, but their behavior destroys their deeds.
What Types of Sins Cause Bankruptcy?
The hadith mentions that (1) verbal abuse, (2) slander, (3) false accusations, (4) taking wealth unjustly, (5) physical harm, (6) humiliation and (7) oppression in all its forms are social sins, not ritual failures.
Imbalance between Rights of Allah and rights of People حقوق العباد
Although, man is to worship none other than Allah and if he is inconsistent in doing so, Allah may forgive him, provided one repents directly yo Allah. But unless a man renders an apology and seeks forgiveness from the person he has harmed, his repentance will not be accepted and the final settlement will be made on the Day of Judgement when the morally bankrupt person will be in great danger and may lose all his good deeds and may even be shown door to hell.
Qur’an confirms this: “Indeed Allah does not forgive injustice between people unless it is restored.” (Meaning derived from Qur’anic principles)
How Judgment Happens According to This Hadith
On the Day of Judgment, the wronged people will come forward and the good deeds of the culprit will be transferred to them. And if the good deeds run out, then sins of the wronged person will be transferred to the morally corrupt person. And if there is still a balance, then the final abode will be hell. This happens even if you prayed, fasted, and gave charity.
Qur’anic Support
The Hadith is supported by verses from Qur'an, given herein under{
- Justice will be perfect: “We shall set up the scales of justice on the Day of Resurrection.” (Qur’an 21:47)
- Every injustice will be accounted for: “Whoever does an atom’s weight of evil will see it.” (Qur’an 99:8)
- No oppression will be tolerated: “Your Lord does not ظلم (wrong) anyone.” (Qur’an 18:49)
Lessons for us
- Religion is not rituals alone - Prayer without character is incomplete.
- Social media sins are dangerous - Backbiting, mocking, slander — all count.
- Good deeds can be lost - A lifetime of worship can vanish through injustice.
- Apology in this world is critical - Better to settle matters here than in the Hereafter.
How to Protect Ourselves from Bankruptcy
✅ Guard your tongue✅ Respect others’ honor✅ Return what you owe✅ Apologize quickly✅ Forgive others✅ Ask Allah for protection
Remember, the Prophet ﷺ said: “Whoever has wronged his brother, let him seek forgiveness today before there is no dinar or dirham.” (Bukhārī)
Final Reflection
The real bankrupt is not the one who loses money — but the one who loses his good deeds to people he wronged.
This hadith teaches us that: (1) Islam is a moral system, (2) Character outweighs ritual, (3) Justice is unavoidable and that (4) Accountability is absolute.
So let us not run morally bankrupt in this world so as no to face a severe retribution on the Day of Judgement. Remember, we have been amply warned.
May Allāh (سبحانه و تعالى) help us understand Qur'ān and follow the Sunnah of Prophet Muhammad ﷺ, which is embodiment of commandments of Allah contained in the Qur'ān. May Allah help us to be like the ones He loves and let our lives be lived helping others and not making others' lives miserable or unlivable. May all our wrong doings, whether intentional or unintentional, be forgiven before the angel of death knocks on our door.
وَمَا عَلَيۡنَاۤ اِلَّا الۡبَلٰغُ الۡمُبِيۡنُ
(36:17) and our duty is no more than to clearly convey the Message.”
That is Our duty is only to convey to you the message that Allah has entrusted us with. Then it is for you to accept it or reject it. We have not been made responsible for making you accept it forcibly, and if you do not accept it, we shall not be seized in consequence of your disbelief, you will yourselves be answerable for your actions on Day of Resurrection.
May Allah forgive me if my posts ever imply a piety far greater than I possess. I am most in need of guidance.
Reading the Qur'ān should be a daily obligation of a Muslim - Reading it with translation will make it meaningful. But reading its Exegesis / Tafsir will make you understand it fully. It will also help the Muslims to have grasp over social issues and their answers discussed in the Qur'an and other matter related to inter faith so that they are able to discuss issues with non-Muslims with authority based on refences from Qur'an.
Please refer to our reference page: Collection of Hadiths of Prophet Muhammad ﷺ about Warning and Cautions for more Hadiths on the subject
For more hadiths on varying subjects, refer to our reference page: Sunnah and Hadith of Prophet Muhammad ﷺ to know more about Hadiths and Sunnah of Prophet of Allah. You may also refer to our Reference Pages for knowing more about Islam and Qur'ān.
Disclaimer: The material for this post has been collected from the references as given above. If anyone differs with the material contained in this post, one may consult the references and their authors. If someone has more material about the subject, he/she is most welcome to share in the comments box to make the post all encompassing. one may also consult local Muslim Imaan of the masjid for more clarification.
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