Can a creditor reclaim specific property loaned to a debtor who subsequently declares bankruptcy?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
A creditor who loaned a specific asset (maal) to a debtor who then faces bankruptcy, provided the asset remains identifiable, has the right to reclaim it. This is established by the saying of the Prophet, peace be upon him: "Whoever finds his property intact with a person who has gone bankrupt, he has the primary right to it." Furthermore, the creditor is considered a creditor who found the exact subject matter of his money, thus granting him the right to take it, similar to a seller.