The more time you give a debtor the less return of your cash you will get!

You have to have it served on both the debtor and the employer or bank and then the money is impounded and goes through the courts.  

These kinds of arrangements mean that one person has agreed to pay for the debt or legal obligations of another.

Where these things become problematics is when the property owner and debtor in succession has spent the money and the lender/servicer allows reinstatement but there is no money to pay.Probably attorney time.

Debtors prison would be the solution to landlords problems.

BK for the average consumer clears out a lot of credit card and medical debt, so presumably the debtor can focus on paying housing and living expense for a few years.

Sometimes you not only don't get what you pay for, but you end up in debt or worse.As they say in real estate, the 3 most important considerations for a RE investment are location, location, and location.  

Also you owing your family a debt, or them owing you a debt, can ruin relationships and cause tension.That aside, I think you would have difficulty securing a loan from the bank if you are using a loan as the source of your down payment.

Is bad credit due to consumer debt or medical debt?  

Personally, I would love to have recently filed debtors as tenants.There are always exceptions and fact dependent rules.