Late Fees on Invoices in Mississippi
What Mississippi contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
8% per annum (default legal rate); higher by written agreement up to legal limits
Small Claims Limit
$3,500
Justice Court
Mechanics Lien Deadline
12 months from the date the work was completed or materials furnished
Mississippi Prompt Payment Act
Mississippi Prompt Payment Act, Miss. Code Ann. § 31-5-25
Mississippi requires state agencies to pay within 45 days. Private construction follows contract terms with mechanics lien enforcement under Miss. Code Ann. § 85-7-131.
Late fee rules for Mississippi invoices
Mississippi allows contractual late fees. The small claims threshold is relatively low at $3,500, so larger disputes require county court.
Mississippi's default legal interest rate is 8% per annum. Written agreements may specify higher rates, though excessive rates may be challenged as usurious.
Important disclaimer
This page provides general information about Mississippi late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Mississippi.
Demand letters and mechanics liens in Mississippi
Mississippi requires a Stop Notice or Notice of Lien to be served on the owner. A demand letter is recommended before filing.
Mechanics lien deadline: 12 months from the date the work was completed or materials furnished. A lis pendens must be filed to perfect the lien.
Sample late fee clause for Mississippi invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (8% per annum (default legal rate); higher by written agreement up to legal limits maximum per Mississippi law) will be applied to all balances remaining unpaid after the due date. Pursuant to Mississippi Code Ann. § 85-7-131 et seq. (Construction Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $3,500 in Justice Court), and referral to collections.”
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Start Free TrialFrequently asked questions — Mississippi
What is the maximum late fee I can charge on an invoice in Mississippi?▾
In Mississippi, Mississippi's default legal interest rate is 8% per annum. Written agreements may specify higher rates, though excessive rates may be challenged as usurious. Always disclose late fee terms in your contract or invoice before work begins.
Does Mississippi have a prompt payment act?▾
Yes. Mississippi requires state agencies to pay within 45 days. Private construction follows contract terms with mechanics lien enforcement under Miss. Code Ann. § 85-7-131.
What is the small claims court limit in Mississippi?▾
The small claims court limit in Mississippi is $3,500. Claims are filed in Justice Court. You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Mississippi?▾
In Mississippi, 12 months from the date the work was completed or materials furnished. A lis pendens must be filed to perfect the lien.
Do I need to send a demand letter before filing a lien in Mississippi?▾
Mississippi requires a Stop Notice or Notice of Lien to be served on the owner. A demand letter is recommended before filing.