The Meaning of Legal Incapacity, Its Types, and the Ruling on Each Type

Question:
May Allah preserve you. This questioner says that Islam came to protect wealth and the rights of people, and therefore legal incapacity was legislated for those who qualify for it. What is meant by legal incapacity, and does it differ from one person to another?

Answer:
Answer: Legal incapacity is preventing a person from disposing of his wealth. It is of two types: The first type is legal incapacity for the benefit of the person under incapacity, such as the legal incapacity imposed on a minor; he is placed under incapacity for his own benefit so that he does not ruin his wealth. The second type is legal incapacity imposed on a person for the benefit of others, such as a debtor whose debts exceed his assets, and whose creditors are demanding their rights; in this case, he is prevented from disposing of his wealth for the benefit of the creditors, and then his wealth or its value is distributed among the creditors, each according to the amount of his debt.