Fatwaa ID: 1409
Assalamualaikum mufti Saab. I was asked a question about bankruptcy. So the father filed bankruptcy in Pakistan which was approved by the court. Now the person has passed and his children are asking if they were liable to find those they owed? It was during war time and they were owed more than what they owed to others from individuals to companies.
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.
In principle, filing bankruptcy does not automatically absolve one of the debts. The debts remain outstanding until paid, settled or waived. In the enquired situation, the heirs are not responsible to search for creditors. However, if they are aware of creditors, especially individuals or private entities, then they will have to reach out to them and resolve the case. Likewise, if a creditor makes a claim and substantiates it, then the estate will have to pay him first.
And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين
Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation.
Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.
References and links to other websites should not be taken as an endorsement of all contents of those websites.
Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.