Also, a "non-business bad debt" on your personal return must be just that, non-business. Some money that was already included in your taxable income, that you paid out and lost. (Like, paying for a home improvement that was never performed. The money came from your after-tax income, so in some cases you can deduct it from your income when it is lost. But, there are important tax distinctions between theft and a bad debt that must be considered as well.)
Here, since this is a business debt, it can never be reported on your personal tax return, even if it was a deductible loss, which it is not as I explained elsewhere.
Now, if you had to make repairs, those expenses should have been reported on your schedule E at the time. Since you paid expenses for repair, that reduced your taxable income at the time, and therefore your tax. If the judgment had been paid, it would have been taxable income.
