ABSTRACT
The issue of the bad debts is one of the contemporary major problems facing by both the conventional banks and Islamic Banks. The interest is the key of solutions used by conventional banks to solve their problems which is totally haram prohibited, contradicting with the principles of Islamic bank, to avoid cheating the people. The study uses the descriptive analytical method. The importance of the subject in the fact that the debt constitutes the largest proportion in the Islamic banks, and the most common are transactions Murabaha. As the Libyan banks began steps to complete transformation of Islamic banking, This study aiming to know the reality of bad debt and Treatment methods by Murabaha in Libyan banks. It is divided into three chapters. In the first chapter I defined the debts and Types. In the second chapter I defined the bad debt, types, and its Aspects. While the third chapter includes the Treatment methods in Islamic jurisprudence. This research attempts to discuss this issue through Islamic banks the experience of and study of the most important solutions in Islamic jurisprudence, also this research will study by the inductive approach and analytical approach to track the views of scholars’ applicants and latecomers in the subject and analysis of Islamic banks experience in the treatment of bad debts in the light of Islamic jurisprudence.