Receiving payment after the death of a family member caused by a road accident
Q: I have a very important question regarding a past incident, and I sincerely request guidance according to the Hanafi school of thought.
My sister and I were involved in a road accident, and sadly my sister passed away. We filed a legal case against the person who caused the accident.
After a few months, some people approached our family for a settlement. They offered us 17 lakh rupees. However, the settlement involved replacing the actual driver with another person who agreed to accept responsibility in exchange for money. At first, we refused, but because of financial hardship, lack of education, and believing that the money could help us fight the case, we eventually signed the settlement papers and accepted the 17 lakh rupees.
The person who accepted the blame did so willingly after receiving money, while the actual driver was protected. We are now using those 17 lakh rupees to build our house.
Our questions are:
Was it Islamically wrong for us to accept this settlement under these circumstances?
Is the 17 lakh rupees halal or not?
If we sincerely repent to Allah, does that make the money halal?
Since our house is being built with this money, is it permissible for us to live in that house?
If we have made a mistake, what should we do now to sincerely repent and correct it according to Shariah?
We deeply regret anything that may have been against the teachings of Islam and sincerely want to know the correct ruling so that we can do what pleases Allah.
