Section

Only creditors whose debts are established by evidence, or by the insolvent debtor’s acknowledgment before he was declared insolvent in favour of someone whom he is not suspected of favouring, may share proportionately in his assets. Once he has been declared insolvent, denied access to his property, and prohibited from buying, selling, receiving, and giving, his acknowledgment of a debt is not valid in favour of anyone, whether a relative or otherwise.

Section

This book centres on six sections:

First: distinguishing which of the insolvent debtor’s acknowledgments and actions are valid before and after the declaration of insolvency, and which are not.

Second: distinguishing which of his assets are placed under legal restriction and shared proportionately among his creditors, and which are left to him and not shared among them.

Third: determining the rules governing liability for assets placed under legal restriction.

Fourth: determining how proportional distribution is to be adjudicated.

Fifth: distinguishing which debts qualify for proportional distribution and which do not.

Sixth: distinguishing what a creditor has a preferential claim to over the other creditors upon a declaration of insolvency, and what he shares with them proportionately without having any preferential claim.

As for the first section—distinguishing which of his actions and acknowledgments are valid before and after the declaration of insolvency, and which are not—before that declaration he may not dispose of any of his property without compensation in matters in which he is not