Musnad Ishaq

Benefits:
The meaning of the aforementioned hadith is that if someone sells something to another person on credit, and then the buyer becomes insolvent and does not have the ability to pay the price, if the seller finds his item with the buyer in its original form, then he has the right to reclaim his item from him. The majority of scholars hold this view. However, the Hanafi scholars say that he is not entitled to his item; rather, he will receive a share equal to that of the other creditors. (Kitab al-Umm: 3/229; al-Mughni: 6/538)

The position of the majority is the stronger one. If the buyer dies before paying the price, then will the one who finds his item in its original form be more entitled to it or not? Imam al-Shafi‘i rahimahullah and Hafiz Ibn Hajar rahimahullah hold the view that in this case, the seller will be more entitled to his item. (Fath al-Bari: 5/346)

However, if the buyer has paid the entire price or a part of the price for the item, then the item is in the ownership of the debtor, and then that item will be distributed among all the creditors; the seller does not have any greater right to it.

As narrated from Sayyiduna Abu Hurayrah radi Allahu anhu, the Messenger of Allah sallallahu alayhi wa sallam said: “Whoever sold his item, and he finds that item with a person who has been declared bankrupt, in its original form, while he has not received any part of its price, then it belongs to him (the seller). But if he has received a part of its price, then he is like the other creditors.” (Sunan Ibn Majah, Hadith no. 2359)