If after deducting the amount of any outstanding debt, if a person still has nisab, they will pay zakat. Otherwise, they will not. However, there is a difference of opinion on how much of a long term debt should be deducted.
For details on how to deal with long term debts when calculating zakat, see our answer on student loans here.
Still have questions?
Our typical response time would be within 5 days from the time your question was posted. Responses provided will be according to our Zakat policy.