Answered by Shaykh Faraz Rabbani
In the Name of Allah, Most Merciful and Compassionate
May Allah's peace and blessings be upon His Messenger Muhammad, his folk, companions, and followers
Just as one can demand one's right, one can also forgo it. Thus, if the person whom you borrowed money from waives the debt, you are no longer liable to repay.
However, one should be careful to ensure that the person truly intends to waive the debt, rather than saying this out of social courtesy or because they imagine you to be in difficulty or distress. It remains the way of religious resolve to insist on paying, unless they absolutely refuse.
And Allah alone gives success.
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