I budget for these as a normal business expense, I do not therefor lose any real money during a vacancy and have no recovery time.  

The recovery is extremely slow, if not non-existent. 

The simple fact is any legal action in the bankruptcy court is going to cost so much more than the recovery is ever going to be and this is if you win.

Collection companies are also a waste of time if the tenants credit is already trashed.A judgment recovery company might buy your judgment once you are granted one IF the tenant is not judgment proof.

Many states allow for the recovery of attorneys fees in situations like this, even if there isn't a provision in the lease allowing for collection costs.

The security deposit will not even come close to covering the make ready costs.We 'could' go after him but in reality it would be 'good' money after 'bad' as he has no job and the filing fees would probably be more then any recovery we could get (if any!).

Some states allow partial recovery of the rent from the time it was vacated without notice until you find a new tenant.

I own a recovery/sober living house. 10 members live in the 5 bedroom home unrelated.

Property damage recovery risk is a challenge regardless and I would imagine a little worse with section 8. 

The statute of limitations in small claims cases varies from two years (for breach of an oral agreement) up to four years (for breach of a written contract, like a lease).Lastly, even if you decide not to go through with a small claims case, I would suggest you at least consider reporting their debt to the credit bureaus through a company like one of these: Mr Landlord Debt Reporting Service or Rent Recovery Service.