דברים, פרק ט״ו, פסוק ג׳

The laws of the Sabbatical year present a delicate balance between economic reality and social compassion, particularly regarding the collection of debts. A clear distinction is made between a foreign borrower and a Jewish borrower, rooted in their vastly different circumstances during this time. Because foreigners continue to plant, harvest, and gather their crops during the Sabbatical year, they maintain a steady income and possess the ability to repay their loans, which are often commercial in nature. In contrast, the Jewish farmer ceases all agricultural work out of devotion to God, leaving him without the means to settle his debts [חזקוני, בכור שור, העמק דבר]. Furthermore, the laws governing the Sabbatical year and the charging of interest are decrees from God rather than logically deduced rules, and therefore they do not apply to foreigners [ביאור יש״ר]. There is also a consideration to avoid giving outright financial gifts to idolaters [רלב״ג].

A fundamental discussion arises regarding the instruction to collect debts from foreigners. One approach maintains that there is an absolute positive Commandment to demand repayment from a foreign borrower [הרמב״ם, מובא ברמב״ן, בטור הארוך ובמלבי״ם]. However, the primary approach among commentators is that this is merely a permission rather than an obligation. The instruction is framed this way to add a layer of severity to the prohibition of collecting from a fellow Jew. By explicitly permitting collection from a foreigner, an additional prohibition is established regarding a Jewish borrower. Consequently, a lender who pressures a Jewish borrower violates both a positive and a negative Commandment [רמב״ן, רש״י, אבן עזרא, תורה תמימה, ביאור יש״ר, הטור הארוך]. Furthermore, lenders are specifically warned not to exploit the time immediately preceding the Sabbatical year to aggressively pressure a Jewish borrower out of fear that the debt will soon be canceled [נחלת יעקב].

When a debt is released, the lender must completely abandon it and remove his involvement entirely [רלב״ג]. This requirement acts as a personal duty for Jews, applying even outside the borders of the Land of Israel [רש ר הירש]. However, there is a significant exception to this rule. If the lender holds collateral against the loan, the debt is not canceled. In this scenario, the value of the loan is no longer solely with the borrower but is already secured in the lender's possession [רבנו בחיי, קיצור בעל הטורים, מלבי״ם, בכור שור, רש ר הירש]. Legal authorities debate whether this exception holds true even if the collateral is of minimal value and does not cover the entirety of the debt [תורה תמימה].

The cancellation of debts is also legally limited to those held directly by the lender. If a lender transfers his debt documents to a court, he removes himself from the claim, making the court the official collector. Under these circumstances, the Sabbatical year does not cancel the debt [הכתב והקבלה, חזקוני, בכור שור, מלבי״ם]. Relying on this legal principle, Hillel the Elder instituted the Prozbul document. Observing that people were refraining from lending money to one another as the Sabbatical year approached—thereby violating a Torah prohibition—he enacted a solution. A lender could simply declare before the court that he was transferring his debt claims to them. This written declaration essentially turns the court into the debt collector, allowing loans to be recovered even after the Sabbatical year ends. This enactment successfully rescued both the economy and the social fabric of the community [תורה תמימה, הכתב והקבלה, חזקוני]. Finally, it is noted that a debt owed by a resident alien is not canceled during the Sabbatical year, yet the lender is under no obligation to pressure him for repayment [רלב״ג].