goods, he must hold the same regarding cash debts payable at a future date—yet neither he nor anyone else has maintained this.
It is then determined what proportion of the total debt is covered by all the insolvent debtor’s assets. If it is half, each creditor receives half his debt and retains a claim against the debtor for the remaining half. If it is a third, he receives a third and retains a claim for the remaining two-thirds. If it is a quarter, he receives a quarter and retains a claim for the remaining three-quarters. Any creditor whose debt is of the same kind as the debtor’s assets—dinars or dirhams—is paid his allotted share in that currency. For a creditor whose debt is not of the same kind as the debtor’s assets, his allotted amount is used to purchase half the goods owed to him, if his debt consists of goods, or half the food owed to him, if it consists of food; he is not handed dinars instead.
If he wishes to take the dinars without having anything purchased for him with them, this is impermissible if he is owed food under an advance-payment sale. If the amount allocated to him in the proportional distribution is less or more than the amount attributable to that portion of the food, this involves selling food before taking possession of it; if it is exactly equal, it involves combining a sale with a loan. If, however, the food is owed to him as repayment of a loan, this is permissible in every case and entails neither objection. If he is owed goods under an advance-payment sale, it is impermissible, although it has also been said to be permissible, because the declaration of insolvency removes grounds for suspicion. This follows the difference of opinion concerning the question recorded in Ashhab’s transmission in the Book of Advance-Payment Sales and Deferred Terms.
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If he wishes to accept his share of the proportional distribution in full settlement of his entitlement, making no further claim against the debtor, this is permissible—if his share of the proportional distribution is taken in full settlement of his entitlement, with no further claim against the debtor, this is permissible—provided that the amount allocated to him equals or is less than his original capital. An exception is where the debt consists of food owed under an advance-payment sale: this is permissible only if the amount allocated to him is exactly equal to his original capital, neither more nor less. If the debt consists of food owed as repayment of a loan, however, this is permissible whether the amount allocated to him equals, falls below, or exceeds his original capital.