How are others handling the situation of needing a customer to remain inactive so no new activity is

The situation is that we have customers who go into bankruptcy or collections, and we want them inactivated in our system so that they can no longer be used as a Ship To, Bill To, or Sold To.  We are not placing them on credit hold, we have simply made the decision to have no new business in the future with this company.  The issue arises when a settlement comes, or an old collection comes through.  Now the business wants to post the cash in AR against the old invoices.  However, the only way to accomplish this is by reactivating