It’s common for BK.  Wallet Hub does a nice job explaining “How to File for Chapter 7 Bankruptcy: A Step-by-Step Guide“.  From the lender standpoint, you want to monitor the situation, while stopping your collection efforts, which is called an automatic stay.   Filing BK is not an easy task, so monitoring the BK is essential.  If the BK is dismissed voluntarily or involuntarily, you can start your collection efforts up again.

In Intro XL, you want to do the following:

1. Create a BK 7 and BK 13 folder in your Collections page.  You can set up these status, in your Store Settings near the bottom.  Once these are created, you want to assign these status to any BK in an automatic stay.  This way, it’s removed from collections.
2. Change the Primary Repayment Method to Revoke.  This will stop any automatic payments and remove the ability to schedule a payment.
3. Add a customer alert.  This will show up on the borrowers profile an account as a fail safe.
4. If the BK is discharged (successful) then you will want to writeoff the account.

Pro tip:  In the borrower profile, you can also “Block” or make the borrower Inactive.