Your Unpaid Invoice Has an Expiry Date: The Statute of Limitations Explained

The story in the video

Our lawyer explains limitation periods from the comfort of his ottoman — which is exactly the problem. While invoices sit unchased, the clock is running. Wait long enough, and a perfectly valid debt becomes one you can no longer enforce in court.

How the statute of limitations works

• Every claim has a deadline. Once it expires, the debtor can raise the time limit as a defence and the court will refuse your claim.
• The clock usually starts when payment was due — not when you finally noticed it wasn't paid.
• Filing a court claim before the deadline normally stops the clock.
• In many countries, a written acknowledgment of the debt or a part-payment restarts the clock.
• The debt may still exist after the deadline, but you lose the power to enforce it.

How long do you have? Examples by country

Limitation periods for unpaid business invoices vary widely. Typical general periods include:

• Germany: 3 years, counted from the end of the year in which the claim arose.
• France: 5 years for claims between businesses.
• Spain: 5 years for general personal claims.
• England and Wales: 6 years for contract claims.
• Other countries: commonly between 3 and 10 years, with special shorter periods for some types of claims.

Cross-border invoices add a twist: the applicable period depends on the law that governs the contract, which is not always your own country's law. Check before you assume you have time.

What can stop or restart the clock?

Limitation periods are not just a countdown. Events can pause or reset them, and the rules differ from country to country.

• Acknowledgment: the debtor confirms the debt in writing — for example in an email asking for more time.
• Part-payment: in many countries, paying part of the debt counts as acknowledging it.
• Court action: filing a claim or a payment order usually interrupts or suspends the period.
• Negotiations: in some countries, such as Germany, ongoing negotiations suspend the period.

Tip: when a debtor asks for a payment plan, get it confirmed in writing. That email may be what keeps your claim alive.

What happens if you miss the deadline?

In most countries the debt doesn't disappear — but the debtor gains a complete defence. If they raise it, the court will dismiss your claim, and you may be ordered to pay their legal costs. Collection agencies and lawyers also find time-barred debts far harder to recover voluntarily, because the debtor's main incentive to pay — the threat of court — is gone.

A court judgment usually starts a new, often much longer period for enforcement. Getting a judgment in time is the best way to protect an old debt.

Don't wait: practical steps

• Chase overdue invoices early — recovery rates fall sharply as invoices age.
• Track the due date and the applicable limitation period for every open invoice.
• Get acknowledgments and payment promises in writing.
• Escalate before the final year of the period, not in its last week.

How Collecty can help

Collecty recovers B2B debts in 190 countries and knows the local limitation rules. We act quickly on aging invoices and escalate in time to protect your claim. No win, no fee.