The Islamic law of Insolvency is that the creditors can take possession of everything of the debtor except his person, which is free from being molested or sent to prison. There is no civil prison in Islam for a debtor, as by imprisonment the loan cannot be realized owing to the insolvent’s possessing no property of any kind. If a man sells a thing to a man on credit, and the purchaser becomes insolvent, the buyer can take hold of the exact property sold to him, if it was not consumed before-hand. If, however, no identical property is found, it will not be lawful for a creditor to take possession of his entire property to the exclusion of others.


There is a great sin in breach of trust. The Beloved Habeeb (sallal laahu alaihi wasallam) said: Everyone of you is a King and everyone of you will be asked about his subjects. The Imam who is a King over the people will be asked about his subjects.

In this way, the head of the family is the King over his family, a servant is a King over his master’s properties. In case, the trust is broken, there is breach of duty with consequence of sin and punishment. The Holy Prophet (sallal laahu alaihi wasallam) said: Don’t act treacherously with Allah about His pledge.

Sayyiduna Abdullah Ibne-Omar (radi Allahu anhuma) reported that Allah’s Apostle (sallal laahu alaihi wasallam) said: (As for) a treacherous man, a standard will be raised for him on the Day of Resurrection. It will be declared, This is the treachery of so and so. (Agreed)

Sayyiduna Rasoolullah (sallal laahu alaihi wasallam) said: When you find a man committing breach of trust in the way of Allah, burn his commodities and beat him. Sayyiduna Rasoolullah (sallal laahu alaihi wasallam) cursed the bribe-taker and the bribe-giver.

%d bloggers like this: