Hi,
If a creditor brings a debtor to court, and the debtor acknowledges the debt and his own non-payment but claims that the creditor had forgiven the loan, he is still required to pay. The only way he can avoid payment is if he has a witnessed document certifying that the loan had been forgiven.
(Shulchan Aruch Choshen Mishpat 98:1; Sefer Meirat Einayim 98:2)
Have a great day,
Mordechai
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