How are the estates of a deceased person with both immediate and deferred debts to be handled if the deferred debt is considered mature upon death?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If a bankrupt person dies and has both immediate and deferred debts, and it is ruled that deferred debts mature upon death, all creditors share equally in the estate proportionate to their debts. If the rule is that deferred debts do not mature upon death, the handling depends on the heirs. If the heirs secure the deferred creditor, the holders of immediate debts take the entire estate. If the heirs refuse to provide security, the deferred debt matures, and that creditor shares with the immediate creditors to prevent the complete loss of their claim.
Supporting text
If the heirs secure the deferred creditor, the holders of immediate debts take the entire estate exclusively. If the heirs refuse security, the deferred debt matures, and they join the immediate creditors to avoid the debt being entirely extinguished.