First thing you could do, is chose a disk you don't mind losing the contents from and try to format it. Then read it back. If the disk does not format it is possible there is an issue with the drive. If the disk formats but not read it is even more likely this is an issue with the drive. If both format and read are ok, then very likely the old data on the disk is gone but your HW is at least good.

I tried formatting already, didn't work. Also, I visually checked electronics in 1541, nothing seems wrong.

What Error did you get ? (got one ?)

First check all Cables, Powersupply Voltages, clean drive head, (may need head realigment)
As far as i know realigment requires a Osciloscope and the right knowledge.
Does another Drive work ? if not swap the CIA's and test again.

Maybe you want to get a SD2IEC Device ? and use a SDCard with your C64.

I don't remember exactly, it was few days ago and I can't check it right now, because my old trustworthy TV blew up, so I have to find another one.
I bought new cables, cleaned heads with that "special" floppy disk cleaner, then with q-tip and rubbing alcohol (it was really, really dirty), but it didn't do anything with reading data.
Also, I don't know anybody, who has working drive, and it is really expensive for buying in place where I am living.

You could try this command OPEN 15,8,15,"I":CLOSE 15 to reset the heads. Do this WITHOUT a disk in the drive.