Sheviis 10:1-2

Sheviis 10:1

The sabbatical year cancels a loan whether or not it is supported by a document. Credit extended by a shop is not canceled unless it was turned into a loan. Rabbi Yehuda says that when one buys on credit, previous credit extended to him gets canceled. Wages owed to a laborer are not canceled unless they were turned into a loan. Rabbi Yosi says that wages for types of work that cannot be performed in the sabbatical year are canceled but that wages for work that can be performed are not canceled.

Sheviis 10:2

If a person slaughtered a cow and divided it among purchasers on Rosh Hashana (of the eighth year, i.e., right after debts are canceled), the following rule applies: If the moon wasn’t witnessed (so that the first day of Rosh Hashana is 30 Elul), the debts are canceled (being loans extended before the eve of 1 Tishrei). Otherwise, the debts are not canceled (being loans extended on 1 Tishrei after the cancelation took place). Fines owed by a rapist, a seducer, a slanderer or anyone ordered by the courts to pay are not canceled. If one lends money against collateral, or if he gives his debts to the court for collection, they are not canceled.