An unpaid invoice doesn’t give you infinite time to chase it. Every state has a statute of limitations. A hard deadline after which you legally cannot sue to collect. That deadline ranges from two years in some states to ten years in others.
The statute of limitations is not about fair dealing or mercy. It’s a legal boundary. Once the window closes, even a legitimate, documented debt becomes uncollectible through the courts.
If you’re sitting on a $10,000 invoice that went unpaid three years ago, the answer to “can I still pursue this?” depends on your state. This guide breaks down the limits by state and explains what they mean for your recovery strategy.
Why statute of limitations matters right now
The statute clock starts the moment the invoice becomes past due. Unlike interest, late fees, or collection letters, you cannot negotiate or restart it. You cannot send a Final Demand Notice on day 1,800 and reset the counter.
The practical implication: if a debtor knows the statute window is closing, they have zero incentive to negotiate a payment plan. They just wait you out.
Conversely, if an invoice is still within your state’s window, the threat of small-claims court or civil suit carries real weight. A payment plan becomes more attractive to the debtor.
How statute of limitations interacts with written vs. oral agreements
Most commercial invoices (written, dated, with terms) fall under the contract statute of limitations in your state. A few fall under the open account or account stated rule. The difference can be 2-3 years.
Written contract: A signed agreement with specific terms. Usually 4-6 years. Includes invoices with written payment terms.
Open account / account stated: An ongoing series of transactions without a single written contract. Usually 3-4 years. Applies to repeat customers with informal terms.
Oral agreement: You promised to do work or sell goods, they promised to pay, but nothing’s in writing. Usually 2-3 years. Hardest to prove and most vulnerable.
If your invoice is a one-off sale to a customer with no prior history, you’re likely in the “contract” bucket, with 4-6 years to pursue. If it’s a repeat customer where you email invoices and they pay some of them, you’re in “open account,” usually 3-4 years.
The difference is material. A 90-day overdue invoice on a written contract with a repeat customer has 4-5 years left. The same invoice with no written history might have only 2-3 years.
Bottom line: Document your agreements in writing. Email the invoice, get written confirmation of terms, or ask the customer to countersign. That pushes you toward the longer statute window and gives you stronger evidence if you ever need to sue.
State-by-state statute of limitations
General rule by state
The table below lists the default statute of limitations for written contracts in each state. This applies to the vast majority of commercial invoices.
Some states distinguish between “open accounts” (shorter, usually 3 years) and “written contracts” (longer, usually 4-6 years). When the difference exists, the written-contract column shows the longer period you can rely on with documented invoices.
| State | Written contract | Open account | Notes |
|---|---|---|---|
| Alabama | 6 years | 3 years | Contract period applies to most invoices with terms. |
| Alaska | 6 years | 3 years | Written invoice with terms falls under contract statute. |
| Arizona | 6 years | 3 years | Contract. Open account is shorter but rare in B2B. |
| Arkansas | 5 years | 3 years | Written contracts get the longer window. |
| California | 4 years | 4 years | Treated uniformly; both 4 years. |
| Colorado | 6 years | 3 years | Contract statute applies to most small business invoices. |
| Connecticut | 6 years | 6 years | Both the same; 6 years across the board. |
| Delaware | 3 years | 3 years | Short window; act quickly. |
| Florida | 5 years | 4 years | Written terms get 5 years. |
| Georgia | 6 years | 4 years | Contract period is the standard for invoices. |
| Hawaii | 6 years | 6 years | Both 6 years. |
| Idaho | 5 years | 4 years | Written contracts are 5. |
| Illinois | 10 years | 5 years | Longest window in the nation for contracts. Aggressive pursuit is viable past 5 years. |
| Indiana | 6 years | 6 years | Both 6 years. |
| Iowa | 10 years | 5 years | Contract statute is 10 years (tied with Illinois). Long pursuit window. |
| Kansas | 5 years | 3 years | Written contract is 5 years. |
| Kentucky | 15 years | 5 years | Unusually long for written contracts; 15 years total. |
| Louisiana | 10 years | 10 years | Both 10 years. Civil law system; longer window than many states. |
| Maine | 6 years | 6 years | Both 6 years. |
| Maryland | 3 years | 3 years | Short. Among the shortest in the nation. |
| Massachusetts | 6 years | 6 years | Both 6 years. |
| Michigan | 6 years | 6 years | Both 6 years. |
| Minnesota | 6 years | 6 years | Both 6 years. |
| Mississippi | 3 years | 3 years | Short window; among the shortest states. |
| Missouri | 10 years | 5 years | Contract statute is 10 years. |
| Montana | 8 years | 5 years | Written contract is 8 years; longer than most. |
| Nebraska | 5 years | 4 years | Written contract is 5 years. |
| Nevada | 6 years | 6 years | Both 6 years. |
| New Hampshire | 3 years | 3 years | Short; move quickly if pursuing. |
| New Jersey | 6 years | 6 years | Both 6 years. |
| New Mexico | 6 years | 4 years | Written contracts are 6 years. |
| New York | 6 years | 6 years | Both 6 years. |
| North Carolina | 3 years | 3 years | Short window; the 3-year rule is strict. |
| North Dakota | 6 years | 5 years | Written contract is 6 years. |
| Ohio | 15 years | 15 years | Tied with Kentucky for the longest window nationwide. 15 years for all contracts. |
| Oklahoma | 5 years | 3 years | Written contracts are 5 years. |
| Oregon | 6 years | 6 years | Both 6 years. |
| Pennsylvania | 4 years | 4 years | Both 4 years. |
| Rhode Island | 10 years | 10 years | Both 10 years. |
| South Carolina | 3 years | 3 years | Short; 3 years across the board. |
| South Dakota | 6 years | 6 years | Both 6 years. |
| Tennessee | 6 years | 6 years | Both 6 years. |
| Texas | 4 years | 4 years | Both 4 years. Uniform across contract types. |
| Utah | 6 years | 6 years | Both 6 years. |
| Vermont | 6 years | 6 years | Both 6 years. |
| Virginia | 5 years | 3 years | Written contracts are 5 years. |
| Washington | 6 years | 6 years | Both 6 years. |
| West Virginia | 10 years | 10 years | Both 10 years. |
| Wisconsin | 6 years | 6 years | Both 6 years. |
| Wyoming | 10 years | 10 years | Both 10 years. |
Shortest statutes (2-3 years)
If your state is Delaware, Maryland, Mississippi, New Hampshire, North Carolina, or South Carolina, your statute window is 3 years or less. An invoice that’s 18 months old is already halfway through. Don’t delay on pursuing recent invoices in these states.
Longest statutes (10-15 years)
If your state is Illinois, Iowa, Kentucky, Louisiana, Missouri, Ohio, Rhode Island, West Virginia, or Wyoming, you have 10+ years to pursue invoices. An invoice from 5 years ago is still well within your window.
This gives you more leverage in settlement negotiations. A debtor in Kentucky knows they’ll be vulnerable to suit for the next 12+ years.
What happens after the statute expires?
Once the statute of limitations expires, you cannot sue. Period. A court will not enforce a judgment because the law says you waited too long.
You can still send collection letters, ask for payment, and attempt settlement. But the threat of court action evaporates. The debtor knows this. If they’ve been silent for 7 years in a state with a 6-year statute, they’re out of reach.
There are rare exceptions. Some states allow the statute to be “tolled” (paused) if:
- The debtor leaves the state (time stops running until they return).
- The debtor is under a legal disability (minor, incompetent, incarcerated).
- The debtor acknowledges the debt in writing (resets the clock).
Don’t rely on these exceptions. Document your agreements, pursue invoices within the window, and use payment plans and settlement offers to collect what you can.
When to stop pursuing an old invoice
If an invoice is past your state’s statute limit, stop chasing it. Write it off. Sending a Final Demand Notice to a customer in Maryland on an invoice from 4 years ago accomplishes nothing legal.
The psychological boundary isn’t what matters. The statute is.
Some businesses draw a line earlier than their statute allows. A $500 invoice from 5 years ago might cost more in your time to pursue than the recovery is worth, even if you’re within the statute window. That’s a different decision (an economic one, not a legal one).
But if an invoice is still within your statute window and worth more than 5 hours of your time to pursue, use it. That’s what the law gives you.
Next steps
If you have invoices approaching the end of your state’s statute window, act now. Send a Final Demand Notice. Offer a payment plan. Settle for less than full amount.
For invoices just becoming past due, use the first 30-60 days aggressively. Most small-business collections happen or don’t in that window. A settlement offer at day 45 is worth more than a Final Demand Notice at day 1,000.
ti3 automates the first 30-60 days with a structured sequence: friendly reminders, specific asks, settlement offers, and a Final Demand Notice in your name. It handles the timing so the debtor gets escalation without you having to chase them manually. If you want help running that sequence, sign up for a free analysis.
Related guides
Learn how to write a demand letter without a lawyer: Demand letter without lawyer.
See the full AR recovery guide for small business: Small business AR recovery: Complete guide.
Learn how to handle unpaid invoices past 90 days: Unpaid invoices over 90 days: what to do.