Bible Dictionary

Various regulations as to the relation between debtor and creditor are laid down in the Scriptures. (1.) The debtor was to deliver up as a pledge to the creditor what he could most easily dispense with (Deut. 24:10, 11). (2.) A mill, or millstone, or upper garment, when given as a pledge, could not be kept over night (Ex. 22:26, 27). (3.) A debt could not be exacted during the Sabbatic year (Deut. 15:1-15). For other laws bearing on this relation see Lev. 25:14, 32, 39; Matt. 18:25, 34. (4.) A surety was liable in the same way as the original debtor (Prov. 11:15; 17:18).

The Mosaic law required that when an Israelite needed to borrow, what he asked was to be freely lent to him, and no interest was to be charged, although interest might be taken of a foreigner (Ex. 22:25; Deut. 23:19, 20; Lev. 25:35-38). At the end of seven years all debts were remitted. Of a foreigner the loan might, however, be exacted. At a later period of the Hebrew commonwealth, when commerce increased, the practice of exacting usury or interest on loans, and of suretiship in the commercial sense, grew up. Yet the exaction of it from a Hebrew was regarded as discreditable (Ps. 15:5; Prov. 6:1, 4; 11:15; 17:18; 20:16; 27:13; Jer. 15:10). Limitations are prescribed by the law to the taking of a pledge from the borrower. The outer garment in which a man slept at night, if taken in pledge, was to be returned before sunset (Ex. 22:26, 27; Deut. 24:12, 13). A widow's garment (Deut. 24:17) and a millstone (6) could not be taken. A creditor could not enter the house to reclaim a pledge, but must remain outside till the borrower brought it (10, 11). The Hebrew debtor could not be retained in bondage longer than the seventh year, or at farthest the year of jubilee (Ex. 21:2; Lev. 25:39, 42), but foreign sojourners were to be "bondmen for ever" (Lev. 25:44-54).