In short: in Malaysia, a contract debt becomes statute-barred six years after it fell due under section 6 of the Limitation Act 1953. A written acknowledgement or part-payment by the debtor restarts the clock; filing suit stops it. Contractual interest is only claimable if your terms provide for it — otherwise interest generally only runs from judgment.
How the debt claim calculator works
It counts the days since the due date and places the debt in an aging bucket. It adds six years to the due date — or to the last acknowledgement or part-payment, if later — to estimate the limitation deadline. It applies simple interest at your contractual rate, and checks the amount against the two insolvency thresholds. Nothing you type leaves your device.
How long do you have to claim a debt in Malaysia?
Six years from the date the debt fell due. After that the claim is time-barred and the debtor has a complete defence, however good your paperwork. Three points catch creditors out:
- A written acknowledgement or part-payment restarts the clock. A signed statement of account, an email confirming the balance, or a small payment on account all count. That is why good credit teams ask for written confirmation of ageing balances.
- A letter of demand does not stop the clock. Only filing suit does. A letter of demand is still worth sending — any acknowledgement it provokes restarts the period.
- A judgment lasts longer. Once obtained, a judgment can be enforced for 12 years, though leave of court is needed to issue execution after six years.
If the calculator shows less than six months left, treat it as urgent. Debts close to the deadline need protective action on advice from counsel, not a leisurely amicable phase. The full sequence is set out in how to recover debt in Malaysia.
Can you charge interest on a late invoice?
Yes, if your contract or credit terms say so. Malaysian courts will generally enforce a contractual late payment interest clause if the rate is a genuine pre-estimate, not a penalty. Without a clause, interest generally only runs from judgment — which is why this calculator does not invent a rate for you. If you have no clause, tick "No interest clause" and add one to your terms for future invoices. See what to do when a customer refuses to pay an invoice and our accounts receivable best practices.
What the RM 50,000 and RM 100,000 (RM 150,000 from 2027) thresholds mean
Two statutory thresholds change how much pressure a creditor can bring. Neither is a step to take lightly, and both require a debt that is due and not genuinely disputed.
| Threshold | Debtor | What it allows |
|---|---|---|
| RM 50,000 or more | Company | A section 466 notice of demand under the Companies Act 2016. If unpaid within 21 days, the company is deemed unable to pay its debts — grounds for a winding-up petition. Section 466 guide · Winding up at RM 50,000 |
| RM 100,000 or more today; RM 150,000 from 2027 | Individual | A creditor's bankruptcy petition under the Insolvency Act 1967. The threshold is RM 100,000 today, rising to RM 150,000 from 2027 (announced in Budget 2027; applies once the Insolvency Act amendment takes effect). Bankruptcy threshold explained |
| Below the thresholds | Either | Civil suit and judgment, then enforcement — garnishee, seizure and sale or judgment debtor summons. |
For the difference between a statutory notice and an ordinary demand, read statutory demand vs letter of demand.
What the aging bucket tells you
Receivables are best managed in buckets: current, 1–30, 31–90, 91–180 and 180+ days past due. Each bucket should carry a rule, not just a number. Chase on a fixed cadence in the first 30 days, send a formal demand by 90, and escalate any account past 180 days to professional recovery. Collectability falls with every month a debt ages — see the debt recovery timeline for realistic durations at each stage.
Frequently asked questions
How long do I have to claim an unpaid invoice in Malaysia?
Under section 6 of the Limitation Act 1953, a contract debt becomes statute-barred six years after it fell due. A written acknowledgement of the debt or a part-payment by the debtor restarts that six-year clock, and filing suit stops it.
Does sending a letter of demand stop the limitation clock?
No. A letter of demand does not stop the clock. Filing suit does. Any written acknowledgement or part-payment the letter provokes from the debtor restarts the six-year period.
Can I charge late payment interest if my contract has no interest clause?
Without a contractual interest clause, interest generally only runs from judgment. Malaysian courts will generally enforce a contractual late payment interest clause if the rate is a genuine pre-estimate, not a penalty. Add a clause to your terms for future invoices.
What is the minimum debt to wind up a company or bankrupt an individual in Malaysia?
A section 466 notice under the Companies Act 2016 requires a debt of at least RM 50,000 owed by a company. A creditor's bankruptcy petition against an individual requires a debt of at least RM 100,000 today, rising to RM 150,000 from 2027 (announced in Budget 2027; applies once the Insolvency Act amendment takes effect).
Is the result from this calculator legal advice?
No. The figures are indicative only. Limitation can be affected by the contract, the type of claim, disputes and the exact dates of acknowledgements or payments. Get advice on your specific facts before relying on any deadline.
Need the debt recovered, not just calculated?
CIRN & CO recovers commercial debts across Malaysia on a contingency basis, using a lawful, documented process — no harassment, no threats, no shaming. Court action, where needed, is taken through solicitors. Start with our debt collection and recovery services, or go straight to debt recovery in Malaysia or bad debt recovery for older accounts.
Call +603-2333 0582 or email info@cirnco.com.
This tool and article are general commercial information for Malaysian creditors, not legal advice. Every recovery matter turns on its facts — speak to our team about your specific situation.