It is impermissible for a debtor who can afford to pay his debt back to procrastinate. Deferring the payment of a debt needlessly is a form of injustice, and whoever does it on purpose is committing a sin and will, thus, receive punishment as a transgressor. The Prophet (peace and blessings be upon him) said: “Delay (in the payment of debt) on the part of a rich man is injustice.” (Reported by Muslim). Remarkably, one is accounted by Allah according to one’s intention. In other words, if someone borrowed money from others with the intention of paying them back, then Allah will pay them for him/her; whereas if someone took a loan from people with a bad intention, then Allah would persecute him/her. In like manner, if a person dies with the intention of paying the debts but failed to do so, then he/she is not to be accounted. Nevertheless, the heirs should relieve the dead by paying his/her debts because the debt imprisons the dead and hinders him/her from entering Paradise.
Furthermore, the children of the deceased should pay his/her debts, each according to his/her ability. While it is not a must for children to pay back their dead parents’ debts, yet if they don’t do so they would leave their parents to face a torment which only Allah knows about. Such a deed is far away from kindness to one’s parents.
If the deceased left a property/wealth, then his/her debts should be paid from it before it is distributed among the heirs.

Given the above, failing to pay back one’s debts—while he/she is able to—would expose that person to punishment in the Hereafter for ignoring people’s rights.

Moreover, if a person owes to pay a price for something in installment, and he/she died before finishing the installments, then his heirs should pay these installments from his/her estate or bear such debts as they will inherit the thing the deceased bought by installments.