What to Do When a Client Ignores Your Invoice for 90 Days

You sent the invoice. You sent a reminder. You sent another reminder. Now it has been 90 days and the client is still ignoring you.

This is a debt recovery problem. You need a structured escalation pathway that protects your legal position while giving the client every reasonable opportunity to pay.

Why 90 days is the critical threshold

Most payment terms are 7, 14, or 30 days. By 90 days overdue, the client has had three full months to respond. At this point:

• Goodwill is exhausted — polite reminders are no longer appropriate
• Your legal position strengthens — the debt is clearly overdue and undisputed if they have not objected
• Tribunal limitation periods are running — delay weakens your case
• The client may be insolvent — the longer you wait, the more likely other creditors will get in first

If the invoice is genuinely disputed, the client would have raised it by now. Silence after 90 days usually means they are avoiding payment, they have cash flow problems, or they think you will give up.

Step 1: Final polite follow-up (day 90-95)

Before you escalate formally, send one final email:

Subject: Final notice — Invoice [number] now 90 days overdue

Body: “This invoice has been outstanding for 90 days. If payment is not received within 7 days, I will commence formal debt recovery action including a letter of demand and tribunal application if necessary. Please contact me immediately if there is a genuine dispute or payment difficulty.”

This email documents your final attempt at informal resolution, signals escalation without being aggressive, and flushes out any genuine dispute before you spend money on formal action.

If they respond with a genuine dispute, resolve that first. If they ask for a payment plan, consider it — a signed payment plan agreement is better than a tribunal fight. If they ignore this email too, move to step 2.

Step 2: Letter of demand (day 97-100)

A letter of demand is a formal written notice that you intend to take legal action if the debt is not paid. It must:

• State the exact amount owed
• Reference the original invoice and payment terms
• Give a deadline (typically 7-14 days)
• State the consequences of non-payment (tribunal application, interest, costs)

Tribunals expect you to have made a reasonable attempt to resolve the matter before filing. A properly drafted letter of demand satisfies that requirement and often results in payment without further action.

Common mistakes:

• Threatening criminal charges (debt is civil, not criminal)
• Claiming legal costs you cannot actually recover (most tribunals do not award full legal costs)
• Making it too long (one page is enough)
• Sending it by email only (always send by registered post or email with read receipt)

Claim Done generates a letter of demand and delivers it by email. Once you approve it, it is emailed to the client, and you receive confirmation of delivery.

Step 3: Wait for the deadline (7-14 days)

Once the letter of demand is sent, wait. Do not chase. Do not negotiate unless they make a serious offer.

If they pay in full: Send a receipt and close the matter.

If they offer a payment plan: Get it in writing using a payment plan agreement that includes interest, default provisions, and a confession of judgment clause.

If they dispute the debt: Assess whether the dispute is genuine. If it is, you may need to negotiate or provide further evidence. If it is a delaying tactic, proceed to tribunal.

If they ignore it: Move to step 4.

Step 4: Tribunal application (after demand deadline expires)

If the letter of demand is ignored, file a claim. Depending on the state, a money claim goes to a tribunal or to the Magistrates or Local Court:

• New South Wales: Local Court of New South Wales — Small Claims Division up to $20,000; General Division over $20,000 up to $100,000 (not NCAT, which hears consumer claims brought by consumers)
• Victoria: Victorian Civil and Administrative Tribunal (VCAT), Civil Claims List
• Queensland: Queensland Civil and Administrative Tribunal (QCAT) — minor civil dispute, up to $25,000
• Western Australia: Magistrates Court of Western Australia — minor case claims up to $10,000; general procedure claims up to $75,000
• South Australia: Magistrates Court of South Australia — minor civil action up to $12,000; general claims up to $100,000
• Tasmania: Magistrates Court of Tasmania (Civil Division) — claims up to $50,000
• Australian Capital Territory: ACT Civil and Administrative Tribunal (ACAT) — civil disputes up to $25,000
• Northern Territory: Northern Territory Civil and Administrative Tribunal (NTCAT) — small claims up to $25,000

What you need to file:

• Completed application form or statement of claim (each tribunal and court has its own)
• Copy of the original invoice
• Copy of the contract or terms of service
• Copy of all correspondence including the letter of demand
• Evidence of delivery (emails, receipts, delivery confirmations)
• Filing fee (filing fees change each 1 July; check the current fee on the tribunal’s or court’s website before you file)

What happens next:

The application or claim is served on the client, who then has a set time to file a defence. If they do not file a defence, you can apply for default judgment. If they do file a defence, the matter will be listed for a hearing.

Most small claims hearings are informal. You do not need a lawyer. You present your evidence, the client presents theirs, and the tribunal member or magistrate makes a decision.

Step 5: Enforce the judgment

Winning at tribunal is not the same as getting paid. If the client still does not pay after judgment, you need to enforce it.

Enforcement options:

• Garnishee order: Take money directly from their bank account or wages
• Writ of execution: Seize and sell their property
• Examination summons: Force them to disclose their assets under oath
• Bankruptcy notice (individuals): If they owe more than $10,000
• Statutory demand (companies): If they owe more than $4,000

Enforcement is a separate process with separate fees. In some cases, you can add enforcement costs to the judgment debt.

What if the client is a company?

If the client is a registered company (Pty Ltd or Ltd) and owes $4,000 or more, you have a faster option: a statutory demand.

A statutory demand gives the company 21 days to pay or face wind-up proceedings. It is the most powerful debt recovery tool in Australia because:

• It does not require a tribunal hearing first
• It shifts the burden to the company to prove the debt is disputed
• It can lead to liquidation if ignored

You must use the prescribed form and swear a supporting affidavit. If the company does not pay or apply to set aside the demand within 21 days, you can file a wind-up application.

Claim Done prepares the statutory demand form and supporting affidavit template for $97, for you to check, sign and serve yourself.

Final checklist: client ignoring invoice 90 days

• [ ] Send final polite follow-up (day 90-95)
• [ ] Wait 7 days for response
• [ ] Send letter of demand by registered post and email (day 97-100)
• [ ] Wait 7-14 days for payment or response
• [ ] File tribunal application if demand ignored
• [ ] Attend hearing with all evidence organised
• [ ] Enforce judgment if client still does not pay

How Claim Done helps with overdue invoices

Claim Done automates the formal escalation pathway. Our Programmatic Algorithms use what you tell us about your invoice and correspondence to generate professionally formatted documents citing the applicable law.

Letter of demand ($49): Drafted and delivered by email. Done in about 5 minutes.

Tribunal application ($97): Your application, formatted for your state’s tribunal or court (for a New South Wales debt, a Local Court statement of claim), and a witness statement. You file it yourself.

Statutory demand ($97): If the client is a company owing $4,000 or more, we prepare the form and supporting affidavit template, for you to check, sign and serve yourself.

Every document is delivered with step-by-step filing instructions. Start your letter of demand now at Claim Done Letter of Demand.

Frequently Asked Questions

Can I charge interest on an invoice that is 90 days overdue?

Yes, if your original terms and conditions or contract included an interest clause. Without an interest clause, a court can still award interest from the date the debt was due at its pre-judgment rate (see your court’s interest rate page). Include the interest calculation in your letter of demand and tribunal application.

What if the client claims they never received the invoice?

If you sent the invoice by email, check your sent folder and any read receipts. If you sent it by post, check your records. If the client genuinely did not receive it, resend it immediately and restart the clock. If they are lying and you have proof of delivery, include that proof in your letter of demand and tribunal application. Tribunals do not accept ‘I never got it’ as a defence when there is clear evidence of delivery.

Do I need to send a letter of demand before filing a tribunal application?

No statute requires it, but tribunals expect you to have made a reasonable attempt to resolve the matter before filing. A letter of demand satisfies that expectation and often results in payment without further action. It also strengthens your case by showing the tribunal you acted reasonably.

What if the client is a sole trader with no assets?

You can still get a judgment, but enforcement may be difficult if they genuinely have no assets or income. Before filing, do a quick search: check if they own property (land titles office), if they have a registered business (ABN lookup), if they are employed (LinkedIn, company websites). If they are genuinely broke, you may need to accept a payment plan or write off the debt. A judgment typically lasts for 12 years in most states, so you can enforce it later if their circumstances improve.

Can I add my letter of demand cost and tribunal filing fee to the debt?

Most tribunals allow you to claim the filing fee as part of the judgment. Some tribunals also allow reasonable debt recovery costs including the cost of a letter of demand, but this varies by state. Include these costs in your tribunal application and let the tribunal decide. You cannot add lawyer fees unless the tribunal specifically awards costs, which is rare in small claims matters.