Shlomo returned from a summer visit to Eretz Yisrael very excited. “It was fascinating,” he exclaimed to his friend Eli. “Scattered all around the country were fallow fields and orchards, with billboards reading: ‘Shemittah is observed here.’ All fruit and vegetable stores state in the kashrus certification the status of their produce.”

“It’s a pity that we barely notice Shemittah outside of Israel,” responded Eli.

“Soon we’ll have a chance,” commented Shlomo with a grin.

“What do you mean?” asked Eli.

“When the Shemittah year 5775 concludes, in another month, shemittas kesafim takes effect and outstanding loans are canceled,” explained Shlomo. “Most authorities rule that this applies also outside of Israel, even nowadays, although the practice in some places was to collect debts even after Shemittah” (C.M. 67:1; Shemittas Kesafim U’pruzbul 2:7).

“Just a minute,” said Eli. “My neighbor had a lot of expenses over the summer. Yesterday, he asked to borrow $5,000 for three months, until he can balance his account.”

“Did you lend it to him?” asked Shlomo.

“I was happy to,” replied Eli. “I just insisted that we draft a proper document, so that we don’t run into misunderstandings later. What happens when Shemittah ends? Will this loan be canceled?”

“I suppose so,” said Shlomo. “Why should it be different from any other loan?

“It doesn’t make sense, though,” argued Eli. “If the loan was granted for three months, extending past the Shemittah year, clearly the understanding was that the loan should not be canceled. Otherwise, what’s the point of the loan?” 

“Is that reason enough that Shemittah should not cancel the loan?” countered Shlomo. “How does that change the Halachah?”

“So there’s no way to lend past the Shemittah year?” asked Eli.

“I don’t know,” acknowledged Shlomo. “Let’s go ask Rabbi Dayan.”

“Does Shemittah cancel a loan due only after Shemittah?” they asked.

“The Gemara (Makkos 3a-b) cites two versions of a statement of Shmuel,” replied Rabbi Dayan. “According to the first version, Shmuel maintains that Shemittah cancels the loan, since it is ultimately destined for collection. According to the second version, however, Shemittah does not cancel the loan, since there is no imminent threat of collection.”

“Whom do we rule like?” asked Shlomo.

“Most authorities follow the second version, that Shemittah does not cancel the loan,” answered Rabbi Dayan. “The Shulchan Aruch rules this way, as well. Only a loan that is already due is canceled by Shemittah. Furthermore, some write that a due datte after Shemittah is like an unstated stipulation by the borrower that he will not evade payment after Shemittah” (C.M. 67:9-10; Ketzos 67:3).

“What about a loan with no specified due date?” asked Shlomo.

“The default time for an unspecified loan is 30 days,” replied Rabbi Dayan (C.M. 73:1). “Therefore, an unspecified loan granted before Elul is past due, and canceled by Shemittah. Moreover, many authorities rule that even a loan granted in Elul — although not due until after Rosh Hashanah – is canceled. While the lender cannot force payment until 30 days, a responsibility to pay exists even beforehand if the borrower can do so easily. Furthermore, the practice in some places is to demand payment even within 30 days” (Bach, C.M. 67:13; Ketzos 67:4; Tumim 67:16; Minchas Shlomo 3:132.19.3; Magen Avraham 307:14).

“What about a loan due in installments, some before Shemittah and some afterwards?” asked Shlomo.

“Installments due before Shemittah that were not paid are canceled by Shemittah,” answered Rabbi Dayan, “whereas installments due after Shemittah are not canceled” (Responsa Rambam #241).

“Of course,” concluded Rabbi Dayan, “if the lender writes a pruzbul, the loan is not canceled” (to be addressed in a future column, iy”H).