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They can't file bankruptcy just on that amount, there has to be at least $5000 in debt to file a bankruptcy.
But if they have sufficient other debt then they can file it and include that amount.
I was under the impression that you could not include a court ordered judgment in a bankruptcy, guess that's not so, I won by default because she did not show, but when she was served she said she was filing
No, judgments from courts are included all the time. There are some types of judgment that aren't dischargeable in bankruptcy, like where there is a specific finding of fraud, but those are rare. Most judgments are completely dischargeable.
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