Bukhari narrated on the authority of Abu Hurayrah that the Messenger of Allah (sallallahu `alayhi wa sallam) said:
"Whoever wronged his brother with regard to his honour or any other matter, should seek his forgiveness today, before there are no longer any dinars, or dirhams; and if he has any righteous deeds, they will be taken from him, in accordance with the wrong he did; and if he has no hasanaat, some of the sayi`aat of his counterpart will be taken and added to his burden.” [Bukhari: Kitaab al-Mazaalim, Baab man kaanat lahu mazlamah `inda rajul, Fath al-Baari, 5/101]
This person whose hasanaat are taken from him by the people, and then has their sayi`aat placed on his own back, is the one who is bankrupt, as the Messenger (sallallahu `alayhi wa sallam) called him. Muslim narrated from Abu Hurayrah that the Messenger of Allah (sallallahu `alayhi wa sallam) said:
"Do you know who is the one who is bankrupt?" They said, "The bankrupt is the one who has no money and no possessions." He said, "Among my ummah, the one who is bankrupt is the one who will come on the Day of Resurrection with prayer and fasting and zakah (to his credit), but he will come having insulted this one, slandered that one, consumed the wealth of this one and shed the blood of that one, and beaten that one. So they will all be given some of his hasanaat, and when his hasanaat run out, before judgement is passed, some of their sins will be taken and cast onto him, then he will be cast into the Fire." [Muslim: 4/1998, hadith no. 2581.]
If a debtor died when he still owed money to people, they will take from his hasanaat whatever is in accordance with what he owes them. In Sunan ibn Maajah it is narrated with a saheeh isnaad that Ibn 'Umar (radhiallahu `anhu) stated: The Messenger of Allah (sallallahu `alayhi wa sallam) said:
"Whoever dies owing a dinar or a dirham, it will be paid from his hasanaat, for then there will be no dinars or dirhams.” [Saheeh al-Jaami' as-Sagheer, 5/537, hadith no. 6432.]


I was checking out some blogs and found this....very interesting stuff.
I didn't know blogs could be so informatif :)
(I should start paying back some of my friends.... I owe a few people : S )