Narrated by Sayyiduna Samurah bin Jundub (may Allah be pleased with him) that the Noble Prophet (peace and blessings be upon him) said: If a creditor finds his exact property with an insolvent person, then he has the greatest right to it.
Hadith Referenceالفتح الربانی / كتاب التفليس والحجر / 6075
Hadith Gradingمحدثین:صحیح
Hadith Takhrij«صحيح بالشواهد ، (انظر مسند أحمد ترقيم الرسالة: 20109 ترقیم بيت الأفكار الدولية: 20370»
Brief Explanation
Benefits: … The meaning of all three ahadith is clear: when a person finds his very own goods with someone who has become insolvent, then those goods will belong to him, and the other creditors of the insolvent person will have no right to them, provided that he (the original owner) has not received anything of their price. From the words of the hadith, this condition is also understood: if the buyer has not yet made any use of the property of another, then the original owner will have a greater right to it. However, if the buyer has made any use of the goods, has changed their condition in any way, or has used them in some manner, then the original owner will not have a greater right. Rather, he will be entitled to a share according to the proportion, just like the other creditors. (Abdullah Rafiq)