I did some research a while back on the Old Testament (yes, I'm that kinda nerd) and realized that in many ways, the Jews of ancient Israel (or even pre-nationhood) had better debt forgiveness policies than we do in the modern world (that I'm aware of).
The Jubilee states that every seven years, all debts would be forgiven without exception. Even if the creditor is the king and the debtor a beggar, without regard for social status, all debts are released after seven years. This even extended to slaves who started as prisoners of war, granting them freedom and (from what I understand) citizenship.
That's a hell of a lot more merciful than debt forgiveness policies today in the US. For example, university loans can follow you for 25 to 30 years. Seven years of work to pay it off, then forgiveness sounds much fairer.
That said: Was this notion actually actively practiced during those times?
If so, by who? Just the Jews or was this more common than I realize?
And lastly, were there any exceptions?
There will be a lot to be said on the specific topic of your query, but, while you are waiting for fresh answers to the question, you might like to review this earlier thread in which I examined the concept of debt forgiveness as it applied in Pharaonic Egypt and Babylonia. In both those societies, notional concepts of forgiveness prove to be more complicated and have more in the way of political underpinnings than it would appear at a more superficial glance:
The same appears to have been true in Rome, according to this thread led by u/XenophonTheAthenian.
The Jubilee year (original Hebrew word for it is pronounced "yovel") was actually every 50th year. Every seventh year was something kind of different, called "shmeeta". Every seventh year, the land must lay fallow. No sowing of seeds, no irrigating, etc. Any crops growing during this shmeeta year is considered holy and must therefore not be wasted. This is still actively practiced in the modern State of Israel. The Yovel is NOT still actively practiced because I think we lost track of the year count while in the diaspora. This 50th year is the year of debt forgiveness, servants going free, and entire tribes reuniting.