Legal Question in Credit and Debt Law in Nevada

The simple answer is yes. A contract can be formed without any papers. A contract is a promise for a promise. The only viable argument against the idea that this was a loan that needed to be paid back would be that it was a gift, but, as your question states, this was a loan. Then the question becomes, how and at what rate you promised to pay it back. The evidence - which would be testimony, not papers in this case, will go into the promises made by you and the lender. The court will seek to know when and how you were to pay it back. But, in short, the lender can take you to court to try and get the money paid back. If you can't pay it then it becomes what - remedy - the lender would have be it collections, taking any property you might have - especially if it appears that property was purchased with the money lent, garnishing your earnings etc. - even if that forces you into bankruptcy.

If you decide to challenge such a lawsuit, the best way to do so would be to retain a lawyer to do so.