Personally  I would sue, for two reasons: 1) You have a chance of recovering your losses.

If it's such a great place as you say, you will have no trouble listing and renting it within 30 days.Even if you have a security deposit, tenants will typically just not pay the last months rent, use the security for the rent (in spite of what the lease says), and you would have to take them to court to recover if there are damages.

Your protection of your personal assets, not including what you are going to invest, is either your investment is substantial enough to protect your partners (i.e. the bank) financially if things go south, or you have so few assets that bombing means no one can recover from you because you have nothing to recover. 

I found this website about 18 months ago while medically recovering and I am still recovering medically.  

Rent rolls grew only 2.5% in 2017, which just beats inflation of 2.1% last year.At this point, construction starts still haven't recovered from the recession.

I have lived right out of Dallas Texas and I found BP about 18 months ago while medically recovering and looking for something to do that is more flexible and based on my experience and no-how.  

I had the arrest affidavit faxed to me and it stated that 5 flags and a cooler were recovered at an estimated value of $1000 and the water cooler was estimated at $80.

If the tenant is worth keeping and has a high likely hood of recovering, extend credit, this isn't that big of a deal. 

I thought the damage this will cause to US economy will be significant and we wont be able to recover from this deep depression for 2 years.

This is the nightmare scenario everyone hopes to avoid if you can you'll have to tough it out until the powers at be decide you can actually try to recover the funds you are owed and once that is the case this is one I wouldn't let go unless it is a last resort, because not paying anything towards rent is a choice not a necessity, even in HCOL Bay area and with a newborn the tenant isn't spending $4k of unemployment on groceries and utilities per month.