The talmudic-inspired process would reduce to our modern proportional instincts if debt can be subdivided and resold.
Consider the case of the 100,200,300 creditors against the debtor with only 100 left. If being owed the larger amount is a disadvantage, the 200 and 300 can each sell their amounts in excess of 100 in 100-unit chunks to third parties.
Then, there are 6 creditors each disputing the 100, and all of them get an equal 16.6-. Assuming the original 200 and 300 sold their excesses at only a small discount to that expected return, they get nearly their proportional shares of the original 100.
The talmudic-inspired process would reduce to our modern proportional instincts if debt can be subdivided and resold.
Consider the case of the 100,200,300 creditors against the debtor with only 100 left. If being owed the larger amount is a disadvantage, the 200 and 300 can each sell their amounts in excess of 100 in 100-unit chunks to third parties.
Then, there are 6 creditors each disputing the 100, and all of them get an equal 16.6-. Assuming the original 200 and 300 sold their excesses at only a small discount to that expected return, they get nearly their proportional shares of the original 100.