What is the legal status of property belonging to a bankrupt person (*muflis*) that is lost while in the possession of a trustee (*ameen*)?

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 1 · Bab 1

Open in Qurani

Primary text

If any property of the bankrupt is lost while in the possession of a trustee, or if any part of his property is sold and the price deposited, and that price is subsequently lost while held by the depositor, the loss falls under the responsibility (*daman*) of the bankrupt. This ruling is affirmed by Al-Shafi'i. The basis for this is that the property and any growth derived from it belong to the bankrupt; therefore, its destruction must also be borne by his estate, similar to general merchandise (*urud*).

Supporting text

Imam Malik held a differing view, stating that general merchandise belongs to the estate of the bankrupt, but the coins (dirhams and dinars) belong to the creditors (*ghurama'*). Al-Mughirah specified that dinars belong to the creditors of dinars, and dirhams belong to the creditors of dirhams.