Someone has owed me money for a long time. I do not want to give up on getting the money back, but on the other hand I don’t want him to be punished on my account in the next world if he never pays it back. Is there some kind of formula I should say?
Please note that some of the money I had given him, came from money I had designated specifically from my tzedaka as a “loan fund” (with the intention of giving it to tzedaka when I received the money back)
There is no specific text that you have to say, just that you are mochel the money and that he shouldn’t be punished as a result of this debt. Regarding the fact that the money was designated to eventually go to tzedakah, if this person would be considered a needy person, then you gave the money to him for tzedakah.