Legal Question in Credit and Debt Law in North Carolina

I don't care how "clear" it was. If it is not in writing, it does not count as a general rule. Do you have something in writing to show that this was a loan, such as a cancelled check where "loan" was written on he memo line or a course of payments? Did they even pay any of it back? Was any interest specified if payments were to be made?

What I would do is write the friend a "demand" letter. Demands have to be in writing. I would summarize the terms, ask for repayment of the whole or offer a payment plan, but include interest. Make sure that the interest does not run afoul of the state's usury laws (if the loan was in NC, then the Commissioner of Banks has published rates of interest; if in another state, check with a lawyer in that state on Law Guru, for example, to find out the interest rate - its important - if you specify a rate of interest that is usurious, you forfeit the right to collect any interest). If your friend responds or accepts the partial payment, you have your evidence. If they do not respond, then you can sue in small claims. If they are a resident of NC, sue in the county where they reside, not you. If they live out of state, you can file in small claims, but you have to file in the state where they live. And if they live far away, its going to be problematic.