Islamic Law on Insolvency and Debt Management Among Muslim Traders in Katsina State

Islamic law regulates the management of debt and insolvency through doctrines of Taflis (judicial declaration of insolvency), Habs (imprisonment for debt), and the priority of debt repayment obligations that are distinct from secular bankruptcy law. Among Muslim traders in Katsina State who conduct business within an Islamic commercial framework, the doctrinal and practical management of business debts reflects both Islamic obligations and the limitations of the formal legal system. This study examines Islamic law provisions on insolvency and debt management and their practical application among traders in Katsina State. A descriptive methodology is applied to seventy traders in Katsina Central Market selected through stratified sampling, combined with analysis of twenty Sharia court debt-related cases from 2015 to 2022 and interviews with ten Islamic law scholars. The study investigates awareness of Islamic debt management obligations, the use of Sharia courts for debt recovery, and the interplay between Islamic and secular debt recovery mechanisms. Available literature from North West Nigeria identifies informal community mediation as the primary debt resolution mechanism preferred over formal court proceedings by Muslim traders. The classical doctrine of Taflis in Maliki and Hanafi jurisprudence provides the analytical framework. Findings are expected to reveal reliance on informal mechanisms with limited institutional support. Recommendations address Sharia court debt recovery procedure simplification and awareness of Islamic debt management obligations among traders. Keywords: insolvency, debt management, Islamic law, Katsina State, Taflis.