The Torah (Devorim 15:2,9,10) tells us that a loan between Jews will become voided as a result of Shemita. This means that if the loan was due to be paid before the end of the Shemita year, it will no longer need to be paid. This is viewed as a Torah mandated charity in which the debt is wiped clean.

In the times of the second Temple, the great Hillel encouraged a method by which a loan can be preserved. This is called Pruzbal, which is a contraction of Aramaic words meaning a solution for the rich and the poor. By encouraging this solution the rich would be willing to lend money to the poor without the loan automatically being voided at the end of Shemita (Shulchan Aruch, Choshen Mishpat 67:30).

The function of the Pruzbal is based on a number of principles. Among them: The assumption that the law that loans are voided by Shemita is Rabbinic in our times (Shulchan Aruch, Choshen Mishpat 67:1) and that loans in the jurisdiction of a court will not be voided (ibid. 67: 11,18).

The pruzbal procedure resembles is some ways a cross between the procedure of authorizing the sale of Chometz before Pesach, and the hatoras Nidarim procedure of Erev Rosh Hashana. It often involves a Kinyan, a statement in front of 2 or 3 qualified individuals, and a document that gets filled out. Please ask your Rabbinic adviser for guidance. Presented here is a sample Pruzbal as well as a pdf document which you can download.

 

For Pruzbal forms for a man or woman lender

or a man representing a man or woman

or a woman representing a man or woman

or for a corporation or organization

please click here:

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