Proceeds are distributed among qualifying creditors pro rata according to their established debts. Quduri describes this as distribution bi-l-hisas.
First determine eligible claims and distributable proceeds; then calculate each creditor’s share against total eligible debt. Where assets are insufficient, the method prevents arbitrary preference of one comparable creditor at the expense of others.
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Proportionate allocation among creditors
Kitab al-Hajr: Insolvency, Interdiction and Creditors’ Rights
Proceeds are distributed among qualifying creditors pro rata according to their established debts. Quduri describes this as distribution bi-l-hisas.
First determine eligible claims and distributable proceeds; then calculate each creditor’s share against total eligible debt. Where assets are insufficient, the method prevents arbitrary preference of one comparable creditor at the expense of others.