Qismatul ghuramaa'

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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.