NSW Old Unpaid Invoices

[Julez]

Hi,
Can a client refuse to pay invoices that were almost 6 year old because they no longer keep relevant records after 5 year old?

It was partly my fault I didn't check my pays until recently.

Both the client and I are Sole Trader businesses. She claimed that she checked her general ledger there is nothing owed to me and therefore wouldn't spend time to further investigate my request when I sent her a full list of what have/haven't been paid.

Also with the 6 years debt collection time limit would it count from an invoice date, service date or payment due date?

Thanks in advance for your advice!

 

[Rod]

No, debt can be enforced. Date of demand for payment ie date of invoice, but can be later if she has admitted owing the money after the date of the invoice.

 

[Julez]

Thanks very much Rod. Can we also consolidate all invoices and take the latest payment date as the date that payments were owed?

e.g. if the invoices were issued in between June 2015 to June 2018 and the latest payment was received in June 2018, could June 2018 be the date of payment owing date for these invoices and therefore starts the 6 year debt enforcement period from June 2018?

The client sometimes entered a payment reference description in my bank statement but sometimes didn't.

 

[Rod]

No you cannot consolidate invoices without the client's permission.

Depending on past practices, if a payment is received without reference to an invoice, then you can apply it to the oldest invoice. This keeps the 'window' open longer.

An invoice is a legal document.

 

[Julez]

No you cannot consolidate invoices without the client's permission.

Depending on past practices, if a payment is received without reference to an invoice, then you can apply it to the oldest invoice. This keeps the 'window' open longer.

An invoice is a legal document.

Thanks so much really appreciate your help!