Qismatul ghuramaa'

(redirected from Qismat al Ghuramaa)

Qismatul ghuramaa'

In Islamic bankruptcy law, the distribution of liquidated assets to all creditors according to the proportion of debt each held. For example, if one creditor holds 25% of a person's debt, he receives 25% of the liquidated assets. This contrasts with the absolute priority principle in conventional finance, whereby all secured creditors must be paid in full before any unsecured creditors are paid.