Instructions for Writing a Prozbul Document

Instructions for Writing a Prozbul Document

What Is a Prozbul — A Brief Background

According to Torah law, at the end of the Shemittah year, with the onset of Rosh Hashanah of the eighth year (the year 5783), all monetary debts between Jews are canceled, and there is no longer a right to demand their payment.

Hillel the Elder instituted the “prozbul,” based on the halachic principle that a debt transferred to a beit din is not canceled and may be collected. Therefore, he instituted that debts be transferred to a beit din for collection; then the debts are not canceled and may continue to be collected after Rosh Hashanah of the eighth year.

The way to make a prozbul is by means of a prozbul document; see a sample in a separate article on the site.

The Laws of Prozbul in Brief

1. The document must specify to which beit din the debts are being transferred. According to the Shulchan Aruch, the debts must be transferred to an important beit din that has authority to extract money and to enact ordinances. According to the Rema, it may be transferred to any three Jews who sit together as a beit din for this purpose. The Sephardic custom is specifically to name an important beit din, while Ashkenazim are not particular about this.

2. Anyone who has a bank account must sign a prozbul document, since the money in the bank is considered a loan. Therefore, one who wishes to withdraw money from his bank account after the end of the Shemittah year must sign a prozbul document.

3. A prozbul is not effective for loans given after the prozbul was written. Therefore, the prozbul should be made only after the last time money enters the bank account.

4. A prozbul may be arranged at night.

5. A prozbul is written only if the borrower has land. The borrower must have the land both at the time the prozbul is written and at the end of the Shemittah year.

6. Even if the land is jointly owned with another person, this is sufficient.

7. Even if the land is rented to him and not owned by him, and even if it is only borrowed by him, this is sufficient.

8. One who has a room in a hotel is considered to have land by rental.

9. If a woman borrowed money, even if the land belongs only to her husband, the prozbul is effective.

10. If a man borrowed money and his wife has land, if he is entitled to use it, this is effective for a prozbul.

11. Regarding a son who is supported by his father, it is uncertain whether he is considered to have land; if his father lends him the place of his bed, that is sufficient.

12. Regarding a yeshiva student who has a room for sleeping, it is uncertain whether he is considered to have land; if the head of the yeshiva lends the student a place, that is sufficient.

13. If the borrower has no land but the guarantor has land, whether an ordinary guarantor or an arev kablan, a prozbul is effective.

14. If the borrower has no land but another person who owes the borrower has land, or the guarantor of the person who owes the borrower has land, the prozbul is effective.

15. If the borrower has no land and the lender wants to write a prozbul, the lender or another person must transfer to the borrower ownership of some amount of land, or an area of four amot. The method of acquisition is that one of the judges, or another person, gives the lender a sudar; the lender raises the sudar, and by this he acquires the land on behalf of the borrower.

16. A young man or woman who has a bank account of their own containing money, or who received money from their parents, or received a stipend from a bein hazmanim yeshiva, or for examinations, or earned money from work, and lent their money to others, or deposited it in a bank or gemach, must make a prozbul.

17. A divorced woman or widow, and other unmarried women who are not supported by their parents, must make a prozbul.

18. A married woman, if she has no money of her own, does not need to make a prozbul.

19. A married woman who has a separate bank account must make a prozbul, and her husband’s prozbul is not effective for her. It may also be done through an agent.

20. A married woman who works in occupations in which it is less common for women to work should be stringent and make a prozbul if her salary money is deposited in the bank; even if it is deposited in a joint account with her husband, one should be stringent that she make a prozbul.

21. A married woman who works in a type of work that is nowadays commonly considered women’s work, such as teaching and the like: some are meticulous that she make a prozbul if her salary money is deposited in the bank, even if it is deposited in a joint account with her husband, or if she lent money to others.

22. Minors who have a bank account: since there are opinions that the debt is canceled [this is the dispute between the Tumim (siman 67, se’if katan 25) and the Minchat Chinuch (mitzvah 477)], the father should make a prozbul for them, based on the law of a guardian who can make a prozbul. The same applies to minors who have some debt or money registered in their name. [Sometimes, when damage was caused to a minor and the insurance company or another party allocated funds for the minor, and they are registered in his name, and they can be withdrawn only with receipts showing that it is for his needs; or inheritance money, and the like.]

23. Nowadays, Bituach Leumi allocates a sum of money for each child. Since one can already decide today where the funds will be deposited, and one can withdraw it from the place where it is and transfer it to another fund, there is room for doubt that perhaps this is already considered a debt whose time for repayment has arrived, and a prozbul should be made.

24. Some are meticulous to fulfill the mitzvah of “shemitat kesafim” — the cancellation of monetary debts — by lending a certain sum after writing the prozbul, and after Rosh Hashanah waiving the debt; if the borrower wants to repay, they say to him: “We cancel the debt.”

24. One who has unmarried children should add in the prozbul document that he is doing this also on behalf of his unmarried children.

Shulchan Aruch (Choshen Mishpat, siman 67).