Time Limits on Accounts Receivable

Time Limits on Accounts Receivable

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How long can an invoice remain unpaid if the customer pays in installments and it is the responsibilty of the company to collect against the customers credit card?

What I would like to know is if there is any statute or other legal instrument stopping me from writing to a custmer to request payment ? Is there a time limit on claiming the outstanding amount? The customer last paid in 2005 and it is my companies responsibility to ensure the clients credit card was charged the appropriate amount ever month for 3 months. The last installement though was not picked up. This has not been the customers fault. We have not communicated to the customer since 2005, nor have we informed them that they have not discharged their obligation.

Thank you.
Ziv Mashasha

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By NeilW
20th Sep 2007 12:11

Limitations
The usual time limit on a debt is six years. Beyond that you are time barred from recovering it.

What you have is a mistake. Mistakes happen. Contact the customer and ask them to settle their debts.

NeilW

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