Section

Once the interdiction has been declared, the judge should promptly sell the debtor’s property and apportion the proceeds among the creditors. He begins with items in danger of spoiling, then livestock, followed by other movable goods, and finally real estate. Every sale must take place, in the presence of the bankrupt and his creditors, in the appropriate market for an immediate cash price equal to the item’s current value and payable in the local currency.

If a particular debt is denominated in a commodity other than that currency and the creditor insists on receiving that very commodity, the judge purchases it and hands it over to him; if the creditor agrees, payment may instead be made in cash—except in the case of a salam debt. In no circumstance may the judge deliver the sold goods before receiving their price in full.

Any money collected is divided among the creditors unless the amount is too small to distribute, in which case the judge waits until a sufficient sum has accumulated. The creditors are not required to prove that no other creditors exist; should another claimant appear after a distribution, he receives his proportional share—though one view is that the entire division is then annulled.

If an item the bankrupt sold before interdiction turns out to belong to someone else and its price has already been spent, the new claim is treated like any debt that has just come to light. Should an item sold by the judge himself later prove to be someone else’s property, the buyer has priority in recovering the price; another opinion places him on a par with the other creditors.

Maintenance must be provided for everyone the debtor is obliged to support until his assets are distributed, unless they can support themselves through earning. According to the sounder view, his residence and personal servant are also sold, unless a servant is indispensable because of chronic illness or the debtor’s official post. He is left one complete set of clothing suitable for his station—a shirt, trousers, turban, and robe—with an additional coat in winter. On the day of distribution, he and those he supports are also left one day’s provision of food.

After the division he is not obliged to take up work or hire himself out in order to clear any remaining debt, though the stronger view obliges him to lease out his umm walad and any endowed land from which he benefits.

If the debtor claims insolvency—or, after distribution, asserts that he possesses nothing further—and the creditors contest his claim, then when the liability arose from a commercial dealing such as a purchase or a loan, the burden of proof rests on him; otherwise, according to the stronger opinion, his sworn oath is sufficient.

Testimony establishing present insolvency is admissible, provided each witness is personally acquainted with the debtor’s circumstances and states explicitly, “He is insolvent,” rather than offering a mere negation such as “He owns nothing.”

Once insolvency is proven, the debtor may neither be imprisoned nor kept under constant surveillance; instead, he is granted a respite until he becomes solvent. If a non-resident debtor is unable to furnish proof of his insolvency, the judge appoints someone to investigate his situation; if that investigator becomes convinced of the debtor’s insolvency, he may testify accordingly.