Section: Questions Category: Money Matters
|Money Matters - Pruzbul question|
|Submitted by Sylvain Blumenfrucht Answered by Rav Yehonoson Hool|
|Answer: Unpaid loans are cancelled at the end of the Shmittah year, Unless a pruzbul is written, which is usually done shortly before the end of the Shmittah year.
The above applies mainly to loans. Unpaid wages and commissions are usually not affected by Shmittah (see Shulchan Aruch, Choshen Mishpat, 67:15), but unpaid expenses that were laid out by the employee may be.
At any rate, any debts that are affected by Shmittah will be recoverable if a valid Pruzbul is executed before the end of the Shmittah year.