What is the ruling if a bankrupt craftsman, holding property belonging to clients (e.g., a launderer or weaver), acknowledges ownership by the clients?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If a bankrupt craftsman, such as a launderer or weaver, acknowledges that the goods in their possession belong to their respective owners, this acknowledgment is invalid. The ruling parallels the issue of debt acknowledgment. The item in the craftsman's possession is sold, and the proceeds are divided among the primary creditors. However, the value of the item becomes a liability owed by the bankrupt individual if they later acquire the means to pay, as the property was used up due to an action originating from them.
Supporting text
If the bankrupt individual is required to take an oath concerning the property and refuses (Nukul) leading to a judgment against them, the ruling is the same as if they had acknowledged the debt: it binds them personally but does not entitle the creditors to a share of the proceeds from the property's sale.