First off, CONGRATULATIONS! If I was in your situation, I think I may be tempted to try and show her up, but I think knowing that you worked yourself out of the situation and that you did it without using the easy way out would be satisfaction enough. And, like if you said, your former business partner will just go back in debt, it doesn't sound like she has learned anything at all. Be happy for yourself, enjoy your success.
What would Gracie think?