Claiming One’s Property from a Bankrupt Person

Source: Urdu Commentary of ‘Umdat al-Ahkam from the Sayings of the Best of Mankind
Translation by: Hafiz Faizullah Nasir

✿ Hadith​

Narrated by: Abu Hurairah (رضي الله عنه)

The Messenger of Allah (صلى الله عليه وسلم) said—or he (Abu Hurairah) said: I heard the Prophet (صلى الله عليه وسلم) say—
“Whoever finds his property exactly as it was with a man (or person) who has become bankrupt, he has more right to it than others.”


✿ Explanation of Vocabulary​

بعينه (Bi-‘Aynihi):
Refers to the exact same item or property, not its equivalent or value.

✿ Explanation of the Hadith​

If someone purchases an item from another and subsequently the seller becomes bankrupt, then:

✔ If no payment has been made for that item, the transaction is considered void (فسخ) and the original seller has the right to repossess the item.
✔ In such a case, other creditors have no right over that item.

However:

✔ If some payment has already been made for the item, then all creditors, including the original seller, are equal shareholders in the value of the asset.

Hadith References:
Sahih al-Bukhari, Book of Loans, Chapter: If one finds his property with a bankrupt person in sale, loan, or deposit, Hadith: 2402
Sahih Muslim, Book of Musaqah, Chapter: One who finds what he sold with the buyer, Hadith: 1559
 
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