It is frequently cheaper in the long run to just let it go. If you get the judgement, then I think you get to write off the loss for the interest on the debt each year. (check with a CPA to be sure, currently that's on my list for the accountant appointment later on). Between the time lost running my business and doing work to improve properties, acquire properties, etc. it's usually easier and cheaper to take the loss on the taxes and move on.