Writing Off Debt

At the end of every seventh year you must cancel the debts of everyone who owes you money.   Deuteronomy 15:1

Lending was encouraged in Israel: “If there are any poor Israelites in your towns when you arrive in the land the LORD your God is giving you, do not be hard-hearted or tightfisted toward them. Instead, be generous and lend them whatever they need” (Deuteronomy 15:7-8).

You could charge reasonable interest to a foreigner, but not to your neighbor. If you received a loan from a neighbor, you were obligated to repay it as quickly as possible. Christians are still under an obligation to repay their debts. Paul says, “Owe nothing to anyone” (Romans 13:8). We honor God as we plan to repay our loans. If we have benefited from someone else’s generosity through a loan without interest, we should not take advantage of that kindness by failing to repay.

Suppose you lived in ancient Israel, and after seven years, your neighbor was unable to repay you. There were circumstances of misfortune in which this could easily happen. What were you to do? According to the law, you were to write off the debt: “Everyone must cancel the loans they have made to their fellow Israelites. They must not demand payment from their neighbors or relatives, for the LORD’s time of release has arrived” (Deuteronomy 15:2).

This law was wide open to abuse. Suppose you were given a $10,000 interest-free loan. Now, in the sixth year of the loan, you have $7,000 in the bank. You open your checkbook, and as you are about to write a check, your hand freezes. I could give him $5,000, but it’s only a few months until the year of canceling debts, you think. I’ll wait. He doesn’t really need the money.

God’s law hangs on two foundational principles: 1) We must love God with our whole hearts, and 2) we must love our neighbors as ourselves. These principles of love extend to our handling of money. Love means that when I receive a loan through the kindness of my brother, I am under an obligation of love to repay him in full as soon as possible.

For further reading, see Deuteronomy 15