Priority in determining the method of debt satisfaction when assets and debt types differ.

General Chapter

Al-Mughni

Book of the Insolvent (Bankruptcy)

Book 14 · Issue 2 · Bab 1

Open in Qurani

Primary text

If a creditor wishes to take from the pooled assets, but the bankrupt insists on paying only with the specific kind of debt owed, the bankrupt's statement takes precedence. This is because the satisfaction of the debt in this manner is considered a form of contractual exchange (*mu'awadah*), which is not valid except by the mutual consent of both parties.