Mr. Weiss contacted Rabbi Dayan at the Business Halacha Institute. “I read with interest last week’s ‘Storyline,’ which addressed shemittas kesafim,” he said. “I understood that at the end of Shemittah 5775 loans past due are canceled.”
“That is correct,” replied Rabbi Dayan. “According to many authorities this is true also outside of Israel, even nowadays.”
“My question is as follows,” said Mr. Weiss. “I have a number of outstanding loans. An acquaintance also just asked me for a week-long loan of $5,000 until he gets his paycheck. I’m afraid to lend to him, though. What happens if he is delayed in repaying until after Rosh Hashanah? Then the loan will be canceled, and I’ll lose my money!”
“You are in company with many other people,” replied Rabbi Dayan, “although I can’t say in good company.”
“What do you mean?” asked Mr. Weiss.
“The Torah explicitly admonishes us not to refrain from lending out of concern for Shemittah,” said Rabbi Dayan. “It states: ‘Beware lest there be a lawless thought in your heart, saying, “The seventh year approaches, the remission year,” and you will look malevolently upon your destitute brother and refuse to give him’” (Devarim 15:9).
“Over 2,000 years ago, toward the end of the Second Beis Hamikdash,” continued Rabbi Dayan, “Hillel noticed that people were refusing to lend others out of concern that the loan would not be repaid. In doing so they were violating this admonition. He therefore instituted writing a pruzbul to allow collecting the loan after Shemittah.”
“What is a pruzbul?” asked Mr. Weiss. “How does it work? What do I have to do?”
“If you have a few minutes, I’m happy to explain to you,” replied Rabbi Dayan.
“Certainly,” said Mr. Weiss. “Go ahead; I’m all ears.”
“As you mentioned, the mitzvah of shemittas kesafim restricts a creditor from collecting his loans after Shemittah,” explained Rabbi Dayan.
“The Torah states: ‘Every creditor shall remit his authority over what he has lent his fellow’ (Devarim 15:2). However, if the creditor transferred the loan and its accompanying documents to beis din’s authority to collect in his stead, the Shemittah year does not remit the loan.
“In order to encourage people to lend and not worry about the loan being canceled, Hillel expanded this principle: He instituted drafting a document that all loans are transferred to beis din, allowing the creditor himself to collect. This institution is called pruzbul” (C.M. 67:11, 18-21; Sma 67:22, 36).
“I don’t understand, though,” objected Mr. Weiss. “If the Torah states that the loan should be remitted, how can Hillel institute that the creditor can collect, against Torah law?”
“The Gemara (Gittin 36a-b) raises this question and provides two explanations,” replied Rabbi Dayan. “First, the institution was based on the opinion that nowadays the obligation of Shemittah is Rabbinic, so that the Sages have the ability to institute rules as they wish.
“Second, in monetary matters the Sages have broad authority, on the basis of hefker beis din hefker — beis din has the right to confiscate property,” continued Rabbi Dayan. “Thus, even according to the opinion that Shemittah remains mid’Oraisa, the Sages can still institute that the creditor can collect through the means of pruzbul.”
“So, what do I have to do in practice?” asked Mr. Weiss.
“Fill out a form stating that you are submitting all loans to beis din to allow you to collect them after Shemittah,” answered Rabbi Dayan. “The form must be signed by Dayanim or witnesses and should be filled out at the end of Elul, before Rosh Hashanah. These forms are readily available in shuls and Jewish publications.”