Does the restriction (Hajr) on the assets of a bankrupt person (Mufllis) cease immediately upon the distribution of his assets?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
One opinion holds that the restriction (Hajr) on the bankrupt person ceases immediately upon the division (Qismah) of his assets. This is because the restriction was imposed for the sake of those assets; once ownership is removed from him, the cause for the restriction ceases, and thus the restriction itself ceases. This is analogous to the lifting of the restriction on the insane person (Majnoon) upon the cessation of their insanity.
Supporting text
The second view maintains that the restriction does not cease except by a ruling from the judge (Hakam). This is because the restriction was established by a judicial ruling, and therefore it can only be lifted by a judicial ruling, similar to a person restricted due to foolishness (Saff). Insanity is differentiated because its establishment and cessation occur inherently, whereas the dispersal of the bankrupt person's assets requires investigation and verification, necessitating judicial oversight.