What is the statute of limitations on collecting an unpaid invoice?
Statute of limitations on unpaid invoices — when does the clock run out?
Short answer
The statute of limitations (SOL) is the legal deadline for filing a lawsuit to collect an unpaid invoice. After the deadline passes, the debt is still owed — but you lose your right to sue to collect it.
**SOL periods by debt type (approximate US ranges):** - Written contracts (signed service agreements): 4–10 years depending on state - Oral contracts (verbal agreements): 2–5 years depending on state - Open accounts (invoices without a signed contract): 3–6 years depending on state
**State examples:** - California: 4 years (written contracts), 2 years (oral) - New York: 6 years (both written and oral) - Texas: 4 years - Florida: 5 years (written), 4 years (oral) - Illinois: 10 years (written contracts)
**When the clock starts:** The statute of limitations typically begins running from the date the invoice was due (or the date of last payment on the account). In some states, it starts from the date of last activity on the account.
**What resets the clock:** - A partial payment by the debtor - A written acknowledgment of the debt by the debtor - A new payment promise in writing
Any of these can restart the limitation period from the date of the activity, giving you a fresh window to sue.
**Practical implication:** If your invoice is approaching the statute of limitations in your state, act now. Small claims court or a formal lawsuit before the deadline preserves your rights. After the deadline, your only recovery options are voluntary payment or collections (which doesn't require filing a lawsuit).
Check your state's exact statute — the rules vary significantly and some states have shorter limits for certain types of contracts.