Can the seller reclaim the sold item if the buyer becomes bankrupt after the item has left the seller's possession?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
If the buyer becomes bankrupt after the sold item has left his ownership through sale, gift, endowment, manumission, or any other means, the seller has no right to reclaim the item. This is because the seller did not find the specific object of his property in the possession of the bankrupt party. This holds true whether the buyer could have reclaimed the item due to an option (khiyar), a defect in the price, or the rescission of a gift involving his child, or similar reasons, based on the established principle. The exit of a part of the property is treated the same as the exit of the entirety.