By Rabbi Yair Hoffman for the Five Towns Jewish Times

A number of people are unaware that any outstanding loans could very well be Chapter-Elevenized quite soon, unless people take advantage of the Pruzbul document.

When someone who loaned another person money fills out and executes the pruzbul form below in front of three men acting as a beis din, debts owed to him or her are now collectible and are not cancelled by the Shmittah year. How does it work? The debt id transferred by the creditor to this Beis Din, and will continue to be in force after the end of the Shmittah year. The beis din then authorizes the creditor to collect on their behalf. The three members of the Beis Din can be related.

It should be noted that a pruzbul only works if the debtor owns real property. The property does not need to be worth that much. If the debtor does not own property, the creditor grants him a small portion of land before the pruzbul is executed.

In the presence of the undersigned three judges (dayanim), duly constituting a Beis Din, there appeared before us
who declared before us as follows:

“I hereby turn over to you judges [insert names] , and
, in this place [insert place name] all of the debts owed to me, whether or not the debts are evidenced in writing, so that I may therefore collect these debts at any time that I desire.”

We the undersigned Beis Din heard the declaration of the above-described person and have empowered such person to avoid having his (or her) debts canceled by shemitta and he (or she) may therefore collect all of his (or her) debts by virtue of this Pruzbul in accordance with the special enactment of Hillel and Chazal.

IN WITNESS WHEREOF, we hereby affix our signatures this day of , 5775, here in .

Signed: , dayan Signed: , dayan Signed: , dayan