What is the true definition of a bankrupt person (Muflis)?
General Chapter
Al-Mughni
Book of the Insolvent (Bankruptcy)
Primary text
The true bankrupt person is he who possesses no wealth and lacks the means to satisfy his needs. The Prophet, peace be upon him, clarified that the bankrupt is one who arrives on the Day of Resurrection with good deeds equivalent to mountains, yet he will have unjustly harmed others, struck them, and seized their honor. These wronged parties will take from his good deeds until, if his good deeds are exhausted and a debt remains, the sins of the claimants will be placed upon him, leading to his final consignment to the Fire. This understanding is supported by the Prophet's tradition regarding the bankrupt, as recorded by Muslim with similar meaning. The worldly definition of bankruptcy, where one lacks dirhams or possessions, is deemed secondary to this severe spiritual destitution.
Supporting text
The jurists define the bankrupt as one whose debt exceeds his wealth, and whose expenditure exceeds his income. This classification is applied even if he possesses some wealth, as that wealth is designated for satisfying his obligations, effectively rendering it nonexistent in practical terms. This aligns with the Prophet's description, as his mountain of good deeds was insufficient for his debts, leading to their transference.