This verse makes it clear that the law applies only to Israelites; foreigners must pay their debts, as usual (see similar discrimination in 23.20). Another way to say this is “You may collect money that a foreigner owes you.”

Whatever of yours is with your brother: that is, whatever a fellow-Israelite owes you; that debt must be forgiven.

Your brother: your fellow-Israelite.

Your hand shall release: this is an idiomatic way of saying “you must cancel [or, forgive].” The most common verb used for the cancellation of debts should be chosen.

Quoted with permission from Bratcher, Robert G. and Hatton, Howard A. A Handbook on Deuteronomy. (UBS Helps for Translators). New York: UBS, 2000. For this and other handbooks for translators see here .