In what order should the bankrupt's assets be sold?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
The sale should commence with the culpable slave, paying the injured party the lesser of the slave's value or the compensation for the injury (arsh), returning any surplus to the creditors. Next, mortgaged property is sold, paying the mortgagee their due amount, and returning any surplus to the creditors. If any debt remains, the bankrupt shares in settling it with the general creditors. Then, perishable goods like fresh food are sold, as their remaining will lead to certain destruction. Following this, livestock is sold because they are prone to loss and require upkeep. Next are general merchandise and furniture, which are subject to potential damage and handling. Finally, real estate is sold last because it is not feared to perish, and its retention allows more time for interested buyers to emerge, potentially increasing the price.