Shemittah Loan Amnesty: Pruzbul

The upcoming Jewish year, 5775 is a "Shemitah" (Sabbatical) year.

Part of the observance of Sh'mitah includes the forgiving of loans. At the end of the seventh year of the Sh'mitah cycle, all loans are nullified under Jewish law, including credit agreements and wage agreements that have been converted to loan agreements. More than 2,000 years ago, Hillel saw that people were avoiding giving loans as the Sh'mitah year neared. He addressed the problem by instituting the pruzbul system. The act of pruzbul transforms private debt and makes it redeemable.

The Laws of Pruzbul are found in Choshen Mishpat Section 67. Strictly speaking Halacha requires that the pruzbul be executed any time before the end of the Sh'mitah year but some authorities strongly recommend the practice of executing a pruzbul before the Sh'mitah year begins as well.

This year, today, the last day before Rosh Hashanah, Wednesday, September 24, 2014, is the last day to do the Pruzbul.

Chabad has a convenient Pruzbul online form. http://www.chabad.org/tools/feedback_cdo/aid/5212/jewish/Fill-Out-a-Pruzbul.htm.

Wishing all of my colleagues a happy New Year.