3,776. The Cancellation of Loans During Shemittah

Hilchos Shemittah v’Yoveil 9:1

There is a Torah obligation to cancel loans during shemittah, as per Deuteronomy 15:2: “All who hold a debt must release their hand.” One who demands payment after shemittah violates a Torah prohibition, as the verse continues, “He may not demand it from his fellow.”

Hilchos Shemittah v’Yoveil 9:2

Under Biblical law, the cancellation of debts only applies when yoveil (the Jubilee year) is observed and land transactions are canceled, meaning that land that was sold returns to its ancestral owners without payment; we know this from our tradition. The Sages said that when we cancel land transactions, we also cancel debts everywhere – both in Israel and elsewhere; when we don’t cancel land transactions, we don’t cancel debts anywhere – not even in Israel.