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When a inan becomes insolvent, and the other person (seller) finds his goods intact with him, he is more entitled to get them than anyone else.
Sahih Muslim Book 22, Hadith 31
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" He is more entitled to get it than any other creditor."
Sahih Muslim Book 22, Hadith 30
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Did you do anything good? He said: No. they said: Try to recall. He said: I used to lend to people and order my servants to give respite to one in straitened circumstances and give allowance to the solvent, for Allah, the Exalted and Majestic, said (to the angels): You should ignore (his failing).
Sahih Muslim Book 22, Hadith 32