Legal Question in Civil Litigation in New Jersey

Re: Recovering loaned money

You should sue immediately, given that your suit may already be barred by the statute of limitations.

However, given that you have no proof that this was a loan and not a gift, it will be difficult to prove that he owes you this money unless he admits to it. You're right, it's your word against his.

Always, always, always, put such agreements in writing.

Re: Recovering loaned money

So long as your agreement was made in NJ, or he lives in NJ or did at the time you made your loan, you should sue in Special Civil Part, Superior Court of New Jersey. If it is getting close to six years since you last got payment, or six years since you loaned the money and never got payment, then sue RIGHT NOW. The longest statute of limitations (time limit to sue) is six years. If it is longer than six years, sue anyway and maybe he will not raise that defense.