Is there a time limit to collect money I'm owed?

It’s been a long time since I was supposed to get paid—can I still collect, or is it too late to take action?

Answer

Yes. Most states have a statute of limitations, which is a time limit for filing a lawsuit to collect unpaid debts. Once that time runs out, you usually can’t sue, although the person who owes you may still choose to pay voluntarily.

Here’s what affects the time limit:

Type of debt and contract: The deadline can differ depending on whether the debt involves goods (like materials or products) or services (like labor or professional work). Written contracts, verbal agreements, and promissory notes may also each have their own time limits.
Your state: Every state sets its own rules, and the time period can vary—usually between 3 and 10 years.
When the clock starts: The time period typically begins when payment was due. However, in many states, acknowledging the debt or making a partial payment can restart the clock, giving you more time to take legal action.

If you’re not sure how the rules apply to your situation, check your state’s laws or talk with a Legal Pro for help understanding your options.

What to consider in your specific situation

The time limit for collecting money varies based on several factors unique to your case.

The type of contract or agreement involved.
Your state’s statute of limitations rules.
When the debt was last acknowledged or partially paid.
The total amount owed and available proof.
Whether the debt was personal or business-related.

If you’re unsure, you can check your state’s rules or ask a Legal Pro for information about how these timelines may apply in your situation.

Explore more breach of contract questions & answers

Explore more questions about breach of contract due to non-payment

When someone fails to pay for goods or services after receiving them, it can qualify as a breach of contract. These questions cover your options for collecting payment and enforcing your rights.