Allah's Apostle said, "If a man finds his very things with a bankrupt, he has more right to take them back than anyone else."

Yahya said that he heard Malik say, "What is done in our community about a man who refers a creditor to another man for the debt he owes him is that if the one referred to goes bankrupt or dies, and does not leave enough to pay the debt, then the creditor has nothing against the one who referred him and the debt does not return to the first party."

Malik said, "This is the way of doing things about which there is no dispute in our community."

Malik said, "If a man has his debt to somebody taken on for him by another man and then the man who took it on dies or goes bankrupt, then whatever was taken on by him returns to the first debtor."

Yahya related to me from Malik from Ibn Shihab from Abu Bakr ibn Abd ar-Rahman ibn al-Harith ibn Hisham that the Messenger of Allah, may Allah bless him and grant him peace, said, "Whenever a man sells wares and then the buyer becomes bankrupt and the seller has not taken any of the price and he finds some of his property intact with the buyer, he is more entitled to it than anyone else. If the buyer dies, then the seller is the same as other creditors with respect to it."

That the Messenger of Allah (saws) said: "Whichever person becomes bankrupt, and a man finds his particular merchandise with him, then he is more deserving of it than others.

[He said:] There are narrations on this topic from Samurah and Ibn 'Umar.

[Abu 'Eisa said:] The Hadith of Abu Hurairah is a Hasan Sahih Hadith. This is acted upon according to some of the people of knowledge and it is the view of Ash-Shafi'i, Ahmad, and Ishaq.

Some of the people of knowledge said that he is just like one of the debtors. This is the view of the people of Al-Kufah.

Malik related to me from Yahya ibn Said from Abu Bakr ibn Muhammad ibn Amr ibn Hazm from Umar ibn Abdal-Aziz from Abu Bakr ibn Abd ar-Rahman ibn al-Harith ibn Hisham from Abu Hurayra that the Messenger of Allah, may Allah bless him and grant him peace, said, "If anyone goes bankrupt, and a man finds his own property intact with him, he is more entitled to it than anyone else."

Malik spoke about a man who sold a man wares, and the buyer went bankrupt. He said, "The seller takes whatever of his goods he finds. If the buyer has sold some of them and distributed them, the seller of the wares is more entitled to them than the creditors. What the buyer has distributed does not prevent the seller from taking whatever of it he finds. It is the seller's right if he has received any of the price from the buyer and he wants to return it to take what he finds of his wares, and in what he does not find, he is like the creditors."

Malik spoke about some one who bought spun wool or a plot of land, and then did some work on it, like building a house on the plot of land or weaving the spun wool into cloth. Then he went bankrupt after he had bought it, and the original owner of the plot said, "I will take the plot and whatever structure is on it." Malik said, "That structure is not his. However, the plot and what is in it that the buyer has improved is appraised. Then one sees what the price of the plot is and how much of that value is the price of the structure. They are partners in that. The owner of the plot has as much as his portion, and the creditors have the amount of the portion of the structure."

Malik said, "The explanation of that is that the value of it all is fifteen hundred dirhams. The value of the plot is five hundred dirhams, and the value of the building is one thousand dirhams. The owner of the plot has a third, and the creditors have two-thirds."

Malik said, "It is like that with spinning and other things of the same nature in these circumstances and the buyer has a debt which he cannot pay. This is the behaviour in such cases."

Malik said, "As for goods which have been sold and which the buyer does not improve, but those goods sell well and have gone up in price, so their owner wants them and the creditors also want to seize them, then the creditors choose between giving the owner of the goods the price for which he sold them and not giving him any loss and surrendering his goods to him.

"If the price of the goods has gone down, the one who sold them has a choice. If he likes, he can take his goods and he has no claim to any of his debtor's property, and that is his right. If he likes, he can be one of the creditors and take a portion of his due and not take his goods. That is up to him."

Malik said about someone who bought a slave-girl or animal and she gave birth in his possession and the buyer went bankrupt, "The slave-girl or the animal and the offspring belong to the seller unless the creditors desire it. In that case they give him his complete due and they take it."

Yahya related to me from Malik from Nafi from Abdullah ibn Umar that Umar ibn al-Khattab said, "If a slave who has wealth is sold, that wealth belongs to the seller unless the buyer stipulates its inclusion."

Malik said, "The generally agreed upon way of doing things among us is that if the buyer stipulates the inclusion of the slave's property whether it be cash, debts, or goods of known or unknown value, then they belong to the buyer, even if the slave possesses more than that for which he was purchased, whether he was bought for cash, as payment for a debt, or in exchange for goods. This is possible because a master is not asked to pay zakat on his slave's property. If a slave has a slave-girl, it is halal for him to have intercourse with her by his right of possession. If a slave is freed or put under contract (kitaba) to purchase his freedom, then his property goes with him. If he becomes bankrupt, his creditors take his property and his master is not liable for any of his debts."

Malik related to me from Umar ibn Abd ar-Rahman ibn Dalaf al- Muzani from his father that a man from the Juhayna tribe used to buy camels before people set out for hajj and sell them at a higher price. Then he travelled quickly and used to arrive in Makka before the others who set out for hajj. He went bankrupt and his situation was put before Umar ibn al-Khattab, who said, "O People! al-Usayfi, al- Usayfi of the Juhayna, was satisfied with his deen and his trust because it was said of him that he arrived before the others on hajj. He used to incur debts which he was not careful to repay, so all of his property has been eaten up by it. Whoever has a debt against him, let him come to us tomorrow and we will divide his property between his creditors. Beware of debts! Their beginning is a worry and their end is destitution. "

That the Prophet (saws) said: "Procrastination (in paying a debt) by a rich person is oppression. So if your debt is transfered from your debtor you should agree, and do not make two sales in one sale."

[Abu 'Eisa said:] The Hadith is the Abu Hurairah (no. 1308) is a Hasan Sahih Hadith. And its meaning is that when the debt of one of you is transferred then agree. Some of the people of knowledge said when a man is offered to transfer his debt to a rich man and he does so, then the transferor is free of it, he is not to seek its return from the transferor. This is the view of Ash-Shafi'i, Ahmad, and Ishaq. Some of the people of knowledge said: "When this wealth could not be collected due to bankruptcy of the one it was transferred to, then he may seek its return to the first one." They argue this view with the saying of 'Uthman and others, when they said: "There is nothing due on a Muslim's wealth that is lost." Ishaq said: "The meaning of this Hadith: 'There is nothing due on a Muslim's wealth that is lost' this is when a man transfers it to another whom he thinks is wealthy, then he becomes bankrupt, so there is nothing due on the Muslim's wealth that is lost."

Malik related to me that he heard Ibn Shihab say, "The precedent of the sunna is that when a slave is freed, his property follows him."

Malik said, "One thing which makes clear that the property of a slave follows him when he is freed is that when the contract (mukatab) is written for his freedom, his property follows him even if he did not stipulate it. That is because the bond of kitaba is the bond of wala' when it is complete. The property of a slave and a mukatab is not treated in the same way as any children they may have. Their children are only treated in the same way as their own slaves, not in the same way as their property. This is because the sunna, in which there is no dispute, is that when a slave is freed, his property follows him and his children do not follow him, and when a mukatab writes the contract for his freedom, his property follows him and his children do not follow him."

Malik said, "One thing which makes that clear is that when a slave or a mukatab are bankrupt, their property is taken but the mothers of their children and their children are not taken because they are not their property."

Malik said, "Another thing which makes it clear is that when a slave is sold and the person who buys him stipulates the inclusions of his property, his children are not included in his property."

Malik said, "Another thing which makes it clear is that when a slave does injure some one, he and his property are taken, and his children are not taken."

Malik said, "The best of what is said about a man who buys the mukatab of a man is that if the man wrote the slave's kitaba for dinars or dirhams, he does not sell him unless it is for merchandise which is paid immediately and not deferred, because if it is deferred, it would be a debt for a debt. A debt for a debt is forbidden."

He said, "If the master gives a mukatab his kitaba for certain merchandise of camels, cattle, sheep, or slaves, it is more correct that the buyer buy him for gold, silver, or different goods than the ones his master wrote the kitaba for, and that must be paid immediately, not deferred."

Malik said, "The best of what I have heard about a mukatab when he is sold is that he is more entitled to buy his kitaba than the one who buys him if he can pay his master the price for which he was sold in cash. That is because his buying himself is his freedom, and freedom has priority over what bequests accompany it. If one of those who have written the kitaba for the mukatab sells his portion of him, so that a half, a third, a fourth, or whatever share of the mukatab is sold, the mukatab does not have the right of pre-emption in what is sold of him. That is because it is like the severance of a partner, and a partner can only make a settlement for a partner of the one who is mukatab with the permission of his partners because what is sold of him does not give him complete rights as a free man and his property is barred from him, and by buying part of himself, it is feared that he will become incapable of completing payment because of what he had to spend. That is not like the mukatab buying himself completely unless whoever has some of the kitaba remaining due to him gives him permission. If they give him permission, he is more entitled to what is sold of him."

Malik said, "Selling one of the instalments of a mukatab is not halal. That is because it Is an uncertain transaction. If the mukatab cannot pay it, what he owes is nullified. If he dies or goes bankrupt and he owes debts to people, then the person who bought his instalment does not take any of his portion with the creditors. The person who buys one of the instalments of the mukatab is in the position of the master of the mukatab. The master of the mukatab does not have a share with the creditors of the mukatab for what he is owed of the kitaba of his slave. It is also like that with the kharaj, (a set amount deducted daily from the slave against his earnings), which accumulates for a master from the earnings of his slave. The creditors of his slave do not allow him a share for what has accumulated for him from those deductions."

Malik said, "There is no harm in a mukatab paying off his kitaba with coin or merchandise other than the merchandise for which he wrote his kitaba if it is identical with it, on time (for the instalment) or delayed. "

Malik said that if a mukatab died and left an umm walad and small children by her or by someone else and they could not work and it was feared that they would be unable to fulfil their kitaba, the umm walad of the father was sold if her price would pay all the kitaba for them, whether or not she was their mother. They were paid for and set free because their father did not forbid her sale if he feared that he would be unable to complete his kitaba. If her price would not pay for them and neither she nor they could work, they all reverted to being slaves of the master.

Malik said, "What is done among us in the case of a person who buys the kitaba of a mukatab, and then the mukatab dies before he has paid his kitaba, is that the person who bought the kitaba inherits from him. If, rather than dying, the mukatab cannot pay, the buyer has his person. If the mukatab pays his kitaba to the person who bought him and he is freed, his wala' goes to the person who wrote the kitaba and the person who bought his kitaba does not have any of it."

Malik related to me from Humayd ibn Qays al-Makki that a son of al-Mutawakkil had a mukatab who died at Makka and left (enough to pay) the rest of his kitaba and he owed some debts to people. He also left a daughter. The governor of Makka was not certain about how to judge in the case, so he wrote to Abd al-Malik ibn Marwan to ask him about it. Abd al-Malik wrote to him, "Begin with the debts owed to people, and then pay what remains of his kitaba. Then divide what remains of the property between the daughter and the master."

Malik said, "What is done among us is that the master of a slave does not have to give his slave a kitaba if he asks for it. I have not heard of any of the Imams forcing a man to give a kitaba to his slave. I heard that one of the people of knowledge, when someone asked about that and mentioned that Allah the Blessed, the Exalted, said, 'Give them their kitaba, if you know some good in them' (Sura 24 ayat 33) recited these two ayats, 'When you are free of the state of ihram, then hunt for game.' (Sura 5 ayat 3) 'When the prayer is finished, scatter in the land and seek Allah's favour.' " (Sura 62 ayat 10)

Malik commented, "It is a way of doing things for which Allah, the Mighty, the Majestic, has given permission to people, and it is not obligatory for them." Malik said, "I heard one of the people of knowledge say about the word of Allah, the Blessed, the Exalted, 'Give them of the wealth which Allah has given you,' that it meant that a man give his slave a kitaba and then reduce the end of his kitaba for him by some specific amount."

Malik said, "This is what I have heard from the people of knowledge and what I see people doing here."

Malik said, "I have heard that Abdullah ibn Umar gave one of his slaves his kitaba for 35,000 dirhams, and then reduced the end of his kitaba by 5,000 dirhams."

Malik said, "What is done among us is that when a master gives a mukatab his kitaba, the mukatab's property goes with him but his children do not go with him unless he stipulates that in his kitaba."

Yahya said, "I heard Malik say that if a mukatab whose master had given him a kitaba had a slave- girl who was pregnant by him, and neither he nor his master knew that on the day he was given his kitaba, the child did not follow him because he was not included in the kitaba. He belonged to the master. As for the slave-girl, she belonged to the mukatab because she was his property."

Malik said that if a man and his wife's son (by another husband) inherited a mukatab from the wife and the mukatab died before he had completed his kitaba, they divided his inheritance between them according to the Book of Allah. If the slave paid his kitaba and then died, his inheritance went to the son of the woman, and the husband had nothing of his inheritance.

Malik said that if a mukatab gave his own slave a kitaba, the situation was looked at. If he wanted to do his slave a favour and it was obvious by his making it easy for him, that was not permitted. If he was giving him a kitaba from desire to find money to pay off his own kitaba, that was permitted for him.

Malik said that if a man had intercourse with a mukataba of his and she became pregnant by him, she had an option. If she liked she could be an umm walad. If she wished, she could confirm her kitaba. If she did not conceive, she still had her kitaba.

Malik said, "The generally agreed on way of doing things among us about a slave who is owned by two men is that one of them does not give a kitaba for his share, whether or not his companion gives him permission to do so, unless they both write the kitaba together, because that alone would effect setting him free. If the slave were to fulfil what he had agreed on to free half of himself, and then the one who had given a kitaba for half of him was not obliged to complete his setting free, that would be in opposition to the words of the Messenger of Allah, may Allah bless him and grant him peace. 'If someone frees his share in a slave and has enough money to cover the full price of the slave, justly evaluated for him, he must give his partners their shares, so the slave is completely free . ' "

Malik said, "If he is not aware of that until the mukatab has met the terms or before he has met them the owner who has written him the kitaba returns what he has taken from the mukatab to him, and then he and his partner divide him according to their original shares and the kitaba is invalid. He is the slave of both of them in his original state."

Malik spoke about a mukatab who was owned by two men and one of them granted him a delay in the payment of the right which he was owed, and the other refused to defer it, and so the one who refused to defer the payment exacted his part of the due. Malik said that if the mukatab then died and left property which did not complete his kitaba, "They divide it according to what they are still owed by him. Each of them takes according to his share. If the mukatab leaves more than his kitaba, each of them takes what remains to them of the kitaba, and what remains after that is divided equally between them. If the mukatab is unable to pay his kitaba fully and the one who did not allow him to defer his payment has exacted more than his associate did, the slave is still divided equally between them, and he does not return to his associates the excess of what he has exacted, because he only exacted his right with the permission of his associate. If one of them remits what is owed to him and then his associate exacts part of what he is owed by him and then the mukatab is unable to pay, he belongs to both of them. And the one who has exacted something does not return anything because he only demanded what he was owed. That is like the debt of two men in one writing against one man. One of them grants him time to pay and the other is greedy and exacts his due. Then the debtor goes bankrupt. The one who exacted his due does not have to return any of what he took."

Malik related to me that he heard that Umm Salama, the wife of the Prophet, may Allah bless him and grant him peace, made a settlement with her mukatab for an agreed amount of gold and silver.

Malik said, "The generally agreed on way of doing things among us in the case of a mukatab who is shared by two partners, is that one of them cannot make a settlement with him for an agreed price according to his portion without the consent of his partner. That is because the slave and his property are owned by both of them, and so one of them is not permitted to take any of the property except with the consent of his partner. If one of them settled with the mukatab and his partner did not, and he took the agreed price, and then the mukatab died while he had property or was unable to pay, the one who settled would not have anything of the mukatab's property and he could not return that for which he made settlement so that his right to the slave's person would return to him. However, when someone settles with a mukatab with the permission of his partner and then the mukatab is unable to pay, it is preferable that the one who broke with him return what he has taken from the mukatab for the severance and he can have back his portion of the mukatab. He can do that. If the mukatab dies and leaves property, the partner who has kept hold of the kitaba is paid in full the amount of the kitaba which remains to him against the mukatab from the mukatab's property. Then what remains of property of the mukatab is between the partner who broke with him and his partner, according to their shares in the mukatab. If one of the partners breaks off with him and the other keeps the kitaba, and the mukatab is unable to pay, it is said to the partner who settled with him, 'If you wish to give your partner half of what you took so the slave is divided between you, then do so. If you refuse, then all of the slave belongs to the one who held on to possession of the slave.' "

Malik spoke about a mukatab who was shared between two men and one of them made a settlement with him with the permission of his partner. Then the one who retained possession of the slave demanded the like of that for which his partner had settled or more than that and the mukatab could not pay it. He said, "The mukatab is shared between them because the man has only demanded what is owed to him. If he demands less than what the one who settled with him took and the mukatab can not manage that, and the one who settled with him prefers to return to his partner half of what he took so the slave is divided in halves between them, he can do that. If he refuses then all of the slave belongs to the one who did not settle with him. If the mukatab dies and leaves property, and the one who settled with him prefers to return to his companion half of what he has taken so the inheritance is divided between them, he can do that. If the one who has kept the kitaba takes the like of what the one who has settled with him took, or more, the inheritance is between them according to their shares in the slave because he is only taking his right."

Malik spoke about a mukatab who was shared between two men and one of them made a settlement with him for half of what was due to him with the permission of his partner, and then the one who retained possession of the slave took less than what his partner settled with him for and the mukatab was unable to pay. He said, "If the one who made a settlement with the slave prefers to return half of what he was awarded to his partner, the slave is divided between them. If he refuses to return it, the one who retained possession has the portion of the share for which his partner made a settlement with the mukatab."

Malik said, "The explanation of that is that the slave is divided in two halves between them. They write him a kitaba together and then one of them makes a settlement with the mukatab for half his due with the permission of his partner. That is a fourth of all the slave. Then the mukatab is unable to continue, so it is said to the one who settled with him, 'If you wish, return to your partner half of what you were awarded and the slave is divided equally between you.' If he refuses, the one who held to the kitaba takes in full the fourth of his partner for which he made settlement with the mukatab. He had half the slave, so that now gives him three-fourths of the slave. The one who broke off has a fourth of the slave because he refused to return the equivalent of the fourth share for which he settled."

Malik spoke about a mukatab whose master made a settlement with him and set him free and what remained of his severance was written against him as debt, then the mukatab died and people had debts against him. He said, "His master does not share with the creditors because of what he is owed from the severance. The creditors begin first."

Malik said, "A mukatab cannot break with his master when he owes debts to people. He would be set free and have nothing because the people who hold the debts are more entitled to his property than his master. That is not permitted for him."

Malik said, "According to the way things are done among us, there is no harm if a man gives a kitaba to his slave and settles with him for gold and reduces what he is owed of the kitaba provided that only the gold is paid immediately. Whoever disapproves of that does so because he puts it in the category of a debt which a man has against another man for a set term. He gives him a reduction and he pays it immediately. This is not like that debt. The breaking of the mukatab with his master is dependent on his giving money to speed up the setting free. Inheritance, testimony and the hudud are obliged for him and the inviolability of being set free is established for him. He is not buying dirhams for dirhams or gold for gold. Rather it is like a man who having said to his slave, 'Bring me such-and-such an amount of dinars and you are free', then reduces that for him, saying, 'If you bring me less than that, you are free.' That is not a fixed debt. Had it been a fixed debt, the master would have shared with the creditors of the mukatab when he died or went bankrupt. His claim on the property of the mukatab would join theirs."