PRUZBUL 5775

WHAT IS A PRUZBUL?

One of the laws of Shemita, which apply both in Eretz Yisroel and in Chutz La’aretz, is what is referred to as Shemitas Kesafim; the nullification of all loans. At the end of the seventh year of the Sh’mitah cycle, all loans as well as many other types of debts are nullified. (One should ask a Halachic authority as to exactly which debts are subject to the Shemitah nullification).

When Hillel the Elder realized that lenders were hesitant to lend money in the anticipation of the Shemitah nullification,  he enacted the Pruzbul thereby facilitating the collection of debts even after the end of Shemitta. The Pruzbul document acts as a mechanism to transfer the loan to Bais Din for collection who in turn empowers the lender to collect the money as their agent.

WHICH PRUZBUL DO I USE?

There are a number of opinions as to which Bais Din is empowered to collect the loans through the mechanism of Pruzbul. This debate can depend on the custom of the lender (Sephardic or Ashkenazi) as well as the location of the lender and the choices of Batei Din available to him.

To help determine which Pruzbul is right for you please see this article, The Laws of Shemitas Kesafim, or call Dayan Shmuel Honigwachs or Dayan Yehoshua Grunwald Shlit”a at 1.888.485.VAAD (8223) or 732.597.1480 or email: baisdin@thehalachacenter.org