Finally, again, "To show that a debt is worthless, you must establish that you have taken reasonable steps to collect the debt. It is not necessary to go to court if you can show that a judgment from the court would be uncollectible" (pertinent part underlined)
SO, you're VERY well PAST what you need to do to show you tried to collect.
Report a non-business bad debt as a short-term capital loss on Form 8949 (PDF), Sales and Other Dispositions of Capital Assets, Part 1, line 1. Enter the name of the debtor and "bad debt statement attached" in column (a). Enter your basis in the bad debt in column (e) and enter zero in column (d). Use a separate line for each bad debt. It is subject to the capital loss limitations. A nonbusiness bad debt deduction requires a separate detailed statement attached to your return.
Generally, a business bad debt is one that comes from operating your trade or business. You can deduct it on your business income tax return.
The following are examples of business bad debts (if previously included in income):
- Loans to clients and suppliers
- Credit sales to customers, or
- Business loan guarantees
A business deducts its bad debts from gross income when figuring its taxable income. You can deduct business bad debts in part or in full. You can claim a business bad debt using either the specific charge-off method or the nonaccrual-experience method.