If a judge divides a bankrupt's estate among known creditors, and another creditor emerges later, does the new creditor reclaim shares from the previously paid creditors?

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 4 · Bab 1

Open in Qurani

Primary text

If the judge distributes the bankrupt's wealth among the creditors, and subsequently another creditor appears, that new creditor reclaims a proportional share from the distributed shares. This view is held by Al-Shafi'i, and narrated from Malik. The reasoning is that if the creditor had been present, they would have participated in the division. Their subsequent appearance necessitates participation, similar to a posthumous creditor of a deceased person sharing in the previously divided estate. The judge's division is not considered a final judgment but a partition in which error has become apparent, analogous to partitioning inherited land when another heir or a will subsequently appears.

Supporting text

A differing narration from Malik suggests that the new creditor does not reclaim shares from the others because doing so revokes the judge's ruling.