The Feds won't be able to increase the Interest rate, because the US debt level has gotten so high and banks are still under stress with low prior loan rates, but high interest costs.

(2) Should we expect to settle for the full amount of the court ordered debt plus court ordered interest?

Buying quality assets with a larger amount down, making improvements, and paying off debt could get you there relatively quickly. 

I have some previous business debts to payoff, so once all the dust has settled with realtor commissions and other closing costs, I'd have roughly $400k-500k of cash at my disposal.  

Eliminate debt, establish a budget, and save.

Purchase price: $925,000 Cash invested: $200,000 13 Unit Multifamily property in the Waveland neighborhood of Des Moines, Iowa. pre-acquisition: 7% under MR and 15% vacancy/bad debt.

Make sure you have enough equity to move forward and also you have to be below 50% debt to ratio income. 

I purchased it with a HELOC so higher interest debt until I can cash out refi.

At that point if would free up my Debt-to-income ratio (Nothing would be in my name & I could start growing again).

Quote from @Griffin Malcolm: The typical experience that I have had flipping homes with solar and also helping buyers/sellers on sales with solar is that the seller ends up having a request from the buyer to pay the remaining balance off from the solar debt on the home without increasing the value.