Are transactions performed by a bankrupt person before judicial sequestration valid?

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Any transaction made by the bankrupt person prior to the ruler imposing sequestration—including sale, gift, acknowledgement of liability, or payment to some creditors—is valid and effective. This is the position held by Abu Hanifa, Malik, and Al-Shafi'i, with no known dissent. The basis for this validity is that the person is competent (rasheed) and not yet subject to judicial restraint (Hajr); therefore, his actions are valid like anyone else's. Since sequestration is the cause for nullification, any action preceding that cause remains valid. Furthermore, since he is qualified for transactions and not yet restrained, he is treated like a solvent person. If he rents out a specific camel or house, the lease agreement is not invalidated by the subsequent bankruptcy, and the renter retains the right until the term expires.