Does Shemitas Kesafim Apply to Other Debts Besides Loans?

Rav Avrohom Yeshaya Cohen, Rosh Kollel of Kollel Ohel Yitzchok and Posek at The Bais HaVaad

Question: We know that shemittah wipes out loans. Does it also erase other forms of debt, such as money owed for damages or payments?

Answer: First of all, shemitas kesafim does not apply to all kinds of loans. Shemitas kesafim applies to what is known as halav’os, but not to what is known as she’ailos. The difference between these two categories of loans is that when one makes a halva’ah, he does not return the exact same item he borrowed.

If someone borrows money, he does not return the same dollars he was given. Rather, the lender gives him a hundred dollar bill, and he uses that money and returns him a different hundred dollar bill. Similarly, if one borrows a dozen eggs, he uses those eggs and returns other eggs. This form of borrowing is known as a halva’ah, and such loans are erased by shemittah.

If someone borrows a car or hammer, on the other hand, he returns the exact same car or hammer. Such borrowing is known as she’ailoh, and shemittah does not erase such loans.

As far as other types of debts, there are a number of cases where shemitas kesafim will not apply.

1. Regarding one who owes a store credit, the halachos are a bit complex and subject to numerous factors. If it is relevant, one should ask a shailah.
2. If someone obligated himself to give a gift, for example, he promised to support his children, that is not a loan and shemittah does not nullify this.
3. If someone lends money to a tzedakah organization to give out to poor people or use for some other mitzvah, shemittah will not erase this debt.
4.  Regarding payments for a job: If an employee is usually paid at a set time and, for whatever reason, he was not fully paid and is owed money by his employer, most Poskim say that this is considered a loan and shemittah would erase the debt if there is no pruzbul. A minority view disagrees and says that shemittah will not erase this debt.

In any case, it is always preferable to write a pruzbul in order to avoid such shailos.