When a borrower files BK, the key concept is the automatic stay, which requires you to stop all collection activity. Bankruptcy cases can take time and may be dismissed or discharged, so ongoing monitoring is important.
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CRITICAL: Automatic Stay In Effect
Once a borrower files, stop ALL collection activity, including calls, emails, ACH pulls, debit attempts, and scheduled payments. Use the steps below to lock the account down inside Intro XL.
⚙️ Bankruptcy Handling in Intro XL
When a borrower is in an automatic stay, the goal is simple: remove the account from collections work queues and prevent accidental payments.
| Step | Action in Intro XL | Why it matters |
|---|---|---|
| 1 | Create BK 7 and BK 13 statuses (folders) in Collections via Store Settings (near the bottom), then assign the borrower to the appropriate BK status. | Keeps bankruptcy accounts out of active collections and stops notifications from going out. |
| 2 | Set Primary Repayment Method to Revoke. This is critical. | Stops automatic payments, removes the ability to schedule payments, and cancels any scheduled payments. |
| 3 | Add a Customer Alert on the borrower profile. Include the chapter type, filing date, and case number if available. | A visible fail safe so staff do not accidentally contact or attempt a payment. |
| 4 | Monitor the case outcome:
| Ensures you only resume activity when allowed and close accounts correctly when discharged. |
🧠 Pro Tip
In the borrower profile, you may also want to opt the borrower out of texting / SMS to prevent automated communication during the automatic stay.
📝 Suggested Customer Alert Text
BANKRUPTCY: Chapter: [7 or 13]. Filed: [MM/DD/YYYY]. Case: [Case #].
Primary repayment method set to Revoke. Do not contact or attempt payment without approval.
Primary repayment method set to Revoke. Do not contact or attempt payment without approval.
Note: This article is operational guidance for using Intro XL.
Your organization is responsible for legal and compliance decisions and should consult counsel for case-specific requirements.
Your organization is responsible for legal and compliance decisions and should consult counsel for case-specific requirements.
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