(40) باب فِي الرَّجُلِ يُفْلِسُ فَيَجِدُ الرَّجُلُ مَتَاعَهُ بِعَيْنِهِ عِنْدَهُ
Narrated AbuBakr ibn AbdurRahman ibn al-Harith ibn Hisham:
The Prophet (ﷺ) said: If a man sells (his) property and the man who buys it becomes insolvent, and the seller does not receive the price of the property he had sold, but finds his very property with him (i.e. the buyer), he is more entitled to it (than others). If the buyer dies, then the owner of the property is equal to the creditors.
Reference: Sunan Abi Dawud 3520
In-book reference: Book 24, Hadith 105
English translation: Book 23, Hadith 3513