Been freelancing for a while now, and I’m starting to realize my method for tracking legal deadlines on unpaid invoices is pretty haphazard.
I mainly rely on spreadsheets and guesswork. Is there a better approach to managing statute of limitations for overdue payments without constantly consulting a lawyer?
Just use your phone calendar - set a reminder for 3 years out when you send each invoice. I keep a quick log too: client name, amount, date, and state. Takes 30 seconds but beats digging through old files when you need to chase someone down. Don’t overthink it though. Clients either pay or they don’t. The deadbeats usually aren’t worth chasing past a few months anyway.
Almost lost a $3,000 claim because I forgot about it for two years. Learned my lesson the hard way.
My system now: When an invoice hits 90 days overdue, I set a phone reminder for the original invoice date plus 4 years. That gives me buffer time since most states are 3-6 years like musiclover said.
I always note which state the client’s in. Had a Louisiana client once - their statute’s only 3 years, not 6 like mine. Almost screwed me.
For anything over $1,000, I send a formal demand letter around 6 months. Creates a paper trail and might reset the clock depending on your state.
Most states give you 3 to 6 years to collect unpaid invoices, so you’ve got more time than you think.
I set calendar reminders for each overdue invoice - job date plus 3 years. That way I know when I’m actually running out of time instead of stressing over every late payment.
Small jobs usually aren’t worth the hassle. If it’s under 500 bucks I just write it off.
I just send reminders and move on if they don’t pay.
I track mine differently than most people here. Simple notebook with:
Here’s what nobody mentioned: document every collection effort. Save every email, call log, and letter about the debt. Some states let you tack on interest and collection costs if you’ve got solid documentation.
Also check if clients moved states. Had someone bail from Texas to New York after stiffing me. Filing rules change depending on location.
For bigger amounts, I send one certified letter at 6 months overdue. Costs maybe 10 bucks but shows you mean business. After that, it’s small claims or write it off.