The Rheins had received an interest-free loan from their Uncle Jack to help finance the purchase of their home. The agreement was that twice a year, in the summer and in the winter, the Rheins would repay $2,500. This past summer, though, business was very slow, so they hadn’t paid. Uncle Jack didn’t say anything, but it was sitting on Mr. Rhein’s mind.
The extended family was planning to get together during winter break for a weekend vacation.
“I’m trying to figure out what to do about Uncle Jack,” Mr. Rhein said to his wife. “He might ask us for the money we owe from the summer.”
“Are we able to pay now?” Mrs. Rhein asked. “You said business picked up again.”
“I checked the bank account and we’re doing OK now,” replied Mr. Rhein. “Money is not the problem.”
“What is the problem, then?” asked Mrs. Rhein. “We can pay $5,000; the payment from the summer and what we owe for now.”
“The problem is that this past Rosh Hashanah was shemittas kesafim,” answered Mr. Rhein. “The outstanding payment due in the summer was cancelled. I wrote a pruzbul before Rosh Hashanah to prevent loans from being cancelled, but I know Uncle Jack is not the kind of person who would have written a pruzbul. It’s going to be hard to explain to him that because of shemittas kesafim the summer payment was cancelled.”
“Can we pay him anyway?” asked Mrs. Rhein.
“That’s what I’m trying to figure out,” said Mr. Rhein. “If I do that, are we violating the mitzvah of shemittas kesafim?”
“You can ask Rabbi Dayan about this,” said Mrs. Rhein. “He’ll tell you what to do.”
Mr. Rhein called Rabbi Dayan and explained the situation. “What should I do about the summer payment?” he asked.
“The prohibition of demanding the loan after shemittah is incumbent upon the lender,” replied Rabbi Dayan. “The borrower is not in violation if he repays the loan. This differs from the prohibition of ribbis, interest, in which both the lender and borrower violate. Nonetheless, when the lender demands the loan and the borrower pays, according to some authorities he violates lifnei iver, causing others to sin.” (Shemittas Kesafim U’Pruzbul 5:3)
“So what should I do?” asked Mr. Rhein.
“You are allowed to give the money to the lender despite the cancellation of the debt, as a gift,” answered Rabbi Dayan. “In fact, Chazal encourage the borrower to do so, and view it favorably. Moreover, the lender can even hint to the borrower that although shemittah has passed and he is bound to cancel the debt, he would like the money, if offered as a gift.” (C.M. 67:36)
“Thus, it would be proper to tell Uncle Jack that although shemittah cancelled the loan, you are giving payment as a gift,” continued Rabbi Dayan. “It would be best to so before he asks you for the money, since the lender violates the prohibition of shemittas kesafim when he demands the loan, even before receiving payment.” (Derech Emunah, Hil. Shemittah V’Yovel 9:164; Shemittas Kesafim U’Pruzbul 4:2-5)
“I’m afraid this might confuse him,” said Mr. Rhein. “He might also ask for the money before I have a chance to give it to him.”
“If so, you can repay him simply,” said Rabbi Dayan. “The Rama [C.M. 67:1] cites an opinion that because shemittas kesafim is rabbinic nowadays, it does not apply outside of Israel. This was the practice in many European communities. Although we now instruct people to draft a pruzbul, the borrower can repay without concern of lifnei iver, since the lender can rely on this opinion.” (Igros Moshe C.M. 2:15; Shemittas Kesafim U’Pruzbul 5:6-7)