Praise be to Allah
We praise Allah for having enabled you to repent, and we ask
Allah to make your repentance sincere and cause you to regret what you have
done and make you resolve never to go back to it.
If the money that a person owes is for something permissible
such as buying food or renting a house, then he has to pay the money that he
owes to those who are entitled to it. But in your case, because what you did
was haram (impermissible), the owner of the nightclub has no right to your
wealth, and you should not benefit from the money owed to him either.
Hence you should give this money in charity to other people.
In the answer to question no.
4642 we stated that Shaykh Ibn ‘Uthaymeen issued a similar fatwa
(verdict) to one who had his beard shaved – which is haram – and did not pay
the barber for shaving his beard.
This is what you should do if it will not result in harm for
you. But if they know you and refer your case to the courts and they make
you pay them, then pay them, and they will be the ones who are sinning
because of taking it from you, and you do not have to give charity if they
take it from you.
And Allah knows best.