diff --git a/channeldb/migration12/invoices.go b/channeldb/migration12/invoices.go
new file mode 100644
index 00000000..7c08a9c9
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+++ b/channeldb/migration12/invoices.go
@@ -0,0 +1,234 @@
+package migration12
+
+import (
+	"bytes"
+	"encoding/binary"
+	"io"
+	"time"
+
+	"github.com/btcsuite/btcd/wire"
+	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/lightningnetwork/lnd/tlv"
+)
+
+const (
+	// MaxMemoSize is maximum size of the memo field within invoices stored
+	// in the database.
+	MaxMemoSize = 1024
+
+	// maxReceiptSize is the maximum size of the payment receipt stored
+	// within the database along side incoming/outgoing invoices.
+	maxReceiptSize = 1024
+
+	// MaxPaymentRequestSize is the max size of a payment request for
+	// this invoice.
+	// TODO(halseth): determine the max length payment request when field
+	// lengths are final.
+	MaxPaymentRequestSize = 4096
+
+	memoType        tlv.Type = 0
+	payReqType      tlv.Type = 1
+	createTimeType  tlv.Type = 2
+	settleTimeType  tlv.Type = 3
+	addIndexType    tlv.Type = 4
+	settleIndexType tlv.Type = 5
+	preimageType    tlv.Type = 6
+	valueType       tlv.Type = 7
+	cltvDeltaType   tlv.Type = 8
+	expiryType      tlv.Type = 9
+	paymentAddrType tlv.Type = 10
+	featuresType    tlv.Type = 11
+	invStateType    tlv.Type = 12
+	amtPaidType     tlv.Type = 13
+)
+
+var (
+	// invoiceBucket is the name of the bucket within the database that
+	// stores all data related to invoices no matter their final state.
+	// Within the invoice bucket, each invoice is keyed by its invoice ID
+	// which is a monotonically increasing uint32.
+	invoiceBucket = []byte("invoices")
+
+	// Big endian is the preferred byte order, due to cursor scans over
+	// integer keys iterating in order.
+	byteOrder = binary.BigEndian
+)
+
+// ContractState describes the state the invoice is in.
+type ContractState uint8
+
+// ContractTerm is a companion struct to the Invoice struct. This struct houses
+// the necessary conditions required before the invoice can be considered fully
+// settled by the payee.
+type ContractTerm struct {
+	// PaymentPreimage is the preimage which is to be revealed in the
+	// occasion that an HTLC paying to the hash of this preimage is
+	// extended.
+	PaymentPreimage lntypes.Preimage
+
+	// Value is the expected amount of milli-satoshis to be paid to an HTLC
+	// which can be satisfied by the above preimage.
+	Value lnwire.MilliSatoshi
+
+	// State describes the state the invoice is in.
+	State ContractState
+}
+
+// Invoice is a payment invoice generated by a payee in order to request
+// payment for some good or service. The inclusion of invoices within Lightning
+// creates a payment work flow for merchants very similar to that of the
+// existing financial system within PayPal, etc.  Invoices are added to the
+// database when a payment is requested, then can be settled manually once the
+// payment is received at the upper layer. For record keeping purposes,
+// invoices are never deleted from the database, instead a bit is toggled
+// denoting the invoice has been fully settled. Within the database, all
+// invoices must have a unique payment hash which is generated by taking the
+// sha256 of the payment preimage.
+type Invoice struct {
+	// Memo is an optional memo to be stored along side an invoice.  The
+	// memo may contain further details pertaining to the invoice itself,
+	// or any other message which fits within the size constraints.
+	Memo []byte
+
+	// PaymentRequest is an optional field where a payment request created
+	// for this invoice can be stored.
+	PaymentRequest []byte
+
+	// FinalCltvDelta is the minimum required number of blocks before htlc
+	// expiry when the invoice is accepted.
+	FinalCltvDelta int32
+
+	// Expiry defines how long after creation this invoice should expire.
+	Expiry time.Duration
+
+	// CreationDate is the exact time the invoice was created.
+	CreationDate time.Time
+
+	// SettleDate is the exact time the invoice was settled.
+	SettleDate time.Time
+
+	// Terms are the contractual payment terms of the invoice. Once all the
+	// terms have been satisfied by the payer, then the invoice can be
+	// considered fully fulfilled.
+	//
+	// TODO(roasbeef): later allow for multiple terms to fulfill the final
+	// invoice: payment fragmentation, etc.
+	Terms ContractTerm
+
+	// AddIndex is an auto-incrementing integer that acts as a
+	// monotonically increasing sequence number for all invoices created.
+	// Clients can then use this field as a "checkpoint" of sorts when
+	// implementing a streaming RPC to notify consumers of instances where
+	// an invoice has been added before they re-connected.
+	//
+	// NOTE: This index starts at 1.
+	AddIndex uint64
+
+	// SettleIndex is an auto-incrementing integer that acts as a
+	// monotonically increasing sequence number for all settled invoices.
+	// Clients can then use this field as a "checkpoint" of sorts when
+	// implementing a streaming RPC to notify consumers of instances where
+	// an invoice has been settled before they re-connected.
+	//
+	// NOTE: This index starts at 1.
+	SettleIndex uint64
+
+	// AmtPaid is the final amount that we ultimately accepted for pay for
+	// this invoice. We specify this value independently as it's possible
+	// that the invoice originally didn't specify an amount, or the sender
+	// overpaid.
+	AmtPaid lnwire.MilliSatoshi
+
+	// Htlcs records all htlcs that paid to this invoice. Some of these
+	// htlcs may have been marked as canceled.
+	Htlcs []byte
+}
+
+// LegacyDeserializeInvoice decodes an invoice from the passed io.Reader using
+// the pre-TLV serialization.
+//
+// nolint: dupl
+func LegacyDeserializeInvoice(r io.Reader) (Invoice, error) {
+	var err error
+	invoice := Invoice{}
+
+	// TODO(roasbeef): use read full everywhere
+	invoice.Memo, err = wire.ReadVarBytes(r, 0, MaxMemoSize, "")
+	if err != nil {
+		return invoice, err
+	}
+	_, err = wire.ReadVarBytes(r, 0, maxReceiptSize, "")
+	if err != nil {
+		return invoice, err
+	}
+
+	invoice.PaymentRequest, err = wire.ReadVarBytes(r, 0, MaxPaymentRequestSize, "")
+	if err != nil {
+		return invoice, err
+	}
+
+	if err := binary.Read(r, byteOrder, &invoice.FinalCltvDelta); err != nil {
+		return invoice, err
+	}
+
+	var expiry int64
+	if err := binary.Read(r, byteOrder, &expiry); err != nil {
+		return invoice, err
+	}
+	invoice.Expiry = time.Duration(expiry)
+
+	birthBytes, err := wire.ReadVarBytes(r, 0, 300, "birth")
+	if err != nil {
+		return invoice, err
+	}
+	if err := invoice.CreationDate.UnmarshalBinary(birthBytes); err != nil {
+		return invoice, err
+	}
+
+	settledBytes, err := wire.ReadVarBytes(r, 0, 300, "settled")
+	if err != nil {
+		return invoice, err
+	}
+	if err := invoice.SettleDate.UnmarshalBinary(settledBytes); err != nil {
+		return invoice, err
+	}
+
+	if _, err := io.ReadFull(r, invoice.Terms.PaymentPreimage[:]); err != nil {
+		return invoice, err
+	}
+	var scratch [8]byte
+	if _, err := io.ReadFull(r, scratch[:]); err != nil {
+		return invoice, err
+	}
+	invoice.Terms.Value = lnwire.MilliSatoshi(byteOrder.Uint64(scratch[:]))
+
+	if err := binary.Read(r, byteOrder, &invoice.Terms.State); err != nil {
+		return invoice, err
+	}
+
+	if err := binary.Read(r, byteOrder, &invoice.AddIndex); err != nil {
+		return invoice, err
+	}
+	if err := binary.Read(r, byteOrder, &invoice.SettleIndex); err != nil {
+		return invoice, err
+	}
+	if err := binary.Read(r, byteOrder, &invoice.AmtPaid); err != nil {
+		return invoice, err
+	}
+
+	invoice.Htlcs, err = deserializeHtlcs(r)
+	if err != nil {
+		return Invoice{}, err
+	}
+
+	return invoice, nil
+}
+
+// deserializeHtlcs reads a list of invoice htlcs from a reader and returns it
+// as a flattened byte slice.
+func deserializeHtlcs(r io.Reader) ([]byte, error) {
+	var b bytes.Buffer
+	_, err := io.Copy(&b, r)
+	return b.Bytes(), err
+}