Can creditors reclaim specific assets when the debtor is bankrupt?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If the dwelling and servant that the debtor cannot dispense with are the specific property of some of the creditors, or if all the bankrupt's assets are the specific properties of creditors (paid for with their funds), those creditors have the right to reclaim them under previously established conditions. This is supported by the Prophet's saying: "Whoever finds his property with a man who has gone bankrupt, he has the strongest claim to it." Furthermore, the right of the creditor is attached to the specific item, making it a stronger claim than the bankrupt's. Denying them reclamation opens the door to deceit, where an indigent person might purchase necessities on credit and claim them to be indispensable.
Supporting text
It is mandatory to reclaim all such items; nothing should be left for the bankrupt because these are the specific properties of others, giving the true owners a stronger right to them than the bankrupt, similar to if the items were physically in their possession or had been seized unjustly.