NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Montana Freelance Invoice Laws
General information about collecting unpaid invoices in Montana
Last Updated: 2025-01-01 • Always verify with a Montana attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
10% per annum (statutory)
Small Claims Limit
$7,000
Statute of Limitations
8 years for written contracts, 5 years for oral
Additional Context
Late Fees: Late fees must be reasonable and specified in the contract. Montana courts enforce agreed-upon commercial provisions.
Interest: Parties can agree to higher rates in writing for commercial transactions.
Small Claims: Small claims division of Justice Court handles disputes. Filing fees are $25-$60. Informal process.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Use written contracts for 8-year protection vs 5 for oral
- ✓ Take advantage of Montana's 10% interest rate
- ✓ Send invoices promptly with detailed itemization
- ✓ Document all scope changes and approvals
- ✓ Use small claims for amounts up to $7,000
Common Mistakes to Avoid
- ✗ Relying on oral agreements (only 5-year limit vs 8 for written)
- ✗ Not specifying interest rates in contracts
- ✗ Not knowing the $7,000 small claims limit
- ✗ Filing in wrong Justice Court
- ✗ Skipping demand letters
When to Consult an Attorney
For invoices over $7,000 or complex contract disputes.
Frequently Asked Questions
What is the small claims limit in Montana?
Montana small claims courts handle disputes up to $7,000. Filing fees are $25-$60. The process is informal.
How long do I have to sue for an unpaid invoice in Montana?
Montana has a generous 8-year statute for written contracts, but only 5 years for oral agreements.
What interest rate can I charge on overdue invoices in Montana?
The statutory rate is 10% per annum. You can specify this or higher rates in your commercial contracts.
Where do I file a small claims case in Montana?
File in the small claims division of Justice Court for the county where the defendant resides or does business.
Do I need a collection license in Montana?
No state license is required to collect your own debts. Third-party agencies should comply with federal FDCPA requirements.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Montana Code Annotated § 31-1-106 (Interest)
- MCA § 25-35-501 (Small Claims)
- MCA § 27-2-202 (Statute of Limitations)
- Montana Judiciary
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Montana who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Montana State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Montana attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Montana state statutes or a licensed Montana attorney. Happy Freelance Life is not a law firm and does not provide legal services.