Overdue
Overdue means not paid or performed by the date it was due. An overdue invoice or obligation puts the debtor in default, which may entitle the creditor to interest, late charges if the contract provides for them, and the right to sue for the amount owed.
How BC law treats it
Interest on an overdue debt is payable at the contract rate if the contract provides one; otherwise a court may award interest under the Court Order Interest Act, RSBC 1996, c 79. A claim for a debt generally must be started within two years under the Limitation Act, SBC 2012, c 13.
What it means for your business
State your payment terms and interest rate clearly on invoices and in contracts so they are enforceable.
Risks and common mistakes
Letting overdue accounts sit too long can allow the two year limitation period to expire.
For the full explanation, see our entry on Overdue payment.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
