The Need for an Islamic Bankruptcy Code

Student editor Esther Agbaje (HLS ’17) suggests that sukuk (commonly called Islamic bonds) are insufficient to handle bankruptcy in financial systems operating with respect to Islamic law, or sharīʿa compliance. Banks and other financial institutions or municipalities that issue sukuk intend for these instrument to organize debt and therefore to be insulated from default. This idea seeks to implement the Islamic law financial principle of profit/loss sharing, designed to … Continue reading The Need for an Islamic Bankruptcy Code

REVIEW:: Classical Islamic Law and Modern Bankruptcy (A Review of Abed Awad, “Classical Islamic Law and Modern Bankruptcy” (2010))

In their paper Classical Islamic Law and Modern Bankruptcy (2010), U.S. editor Abed Awad and his co-author Robert E. Michael compares bankruptcy in classical Islamic law to American bankruptcy pre and post the enactment of Chapter 11. Bankruptcy in classical Islamic law is "strongly analogous to the traditional civil and common law treatment of bankrupts prior to … Continue reading REVIEW:: Classical Islamic Law and Modern Bankruptcy (A Review of Abed Awad, “Classical Islamic Law and Modern Bankruptcy” (2010))

Debt and Bankruptcy in Classical Islamic Law

Student editor Esther Agbaje (Harvard Law School) explores classical Islamic law's basic conceptions of debt and bankruptcy. While the main Islamic texts, the Qur’ān and Sunna (records of the Prophet Muhammad's teachings), provide principles for fiscal  matters, these principles are not enough to establish systems as complex as those in modern finance with a guarantee of soundness in … Continue reading Debt and Bankruptcy in Classical Islamic Law