[ADiamond]

The cost to file a claim or suit is expensive, and the ability to collect if i get a judgement will be difficult. He says he just does not have the money.

my motto is "you can't get blood from a rock." the judgment will warn creditors not to fund him at best, let alone allow you to collect. you already know you're going to have a hard time collecting. be happy he didn't put you through bankruptcy or corporate turnaround.

take what you can get, try to get him funded elsewhere and get paid. sounds like you almost have principle back, so if nothing else transpires cut your losses and move onto the next one learning from your mistake.