Avoid the prescription of invoices. Interrupt the prescription period.
What does the interruption of a limitation period mean, and what are the benefits of applying it? Interruption is the way to prevent an invoice from expiring. How does it work? We will explain it to you!
What is the interruption of prescription?
Do not wait too long to remind your clients of their unpaid invoices because once an invoice becomes time-barred, you can no longer enforce its payment through the courts. Fortunately, it is possible to stop this. You can interrupt the limitation period of your invoice.
Interrupting the limitation period of an invoice means the part of the limitation period that has already expired is no longer taken into account. When you interrupt an invoice, a new limitation period starts immediately. In other words, the statutory limitation period begins again from zero.
How can you interrupt the prescription of an invoice?
The prescription can be interrupted by:
- Recognizing the debtor. The debtor confirms that they have an obligation to pay. For example, they have already paid part of the invoice or proposed an instalment plan.
- Initiating legal proceedings. This can be done, for example, by submitting the unpaid invoice to Unpaid.
- Sending a letter of interruption. In this case, you send your client a written reminder to pay the unpaid invoice. Make sure the letter is legally correct; otherwise, your invoice will still be time-barred once the limitation period expires.
What conditions must a letter of interruption meet?
For the letter to be valid, you should bear the following conditions in mind:
1) State explicitly in the breach letter that there is an outstanding invoice.
2) State the amount of the invoice.
3) Write that you expect your customer to pay this invoice.
What is the difference between an expired and a time-dated invoice? Read about it here.