Letter of Demand

What is a letter of demand?

A letter of demand is a legal letter from a creditor to their debtor stating the amount outstanding, the basis of the debt including details of invoices, contract documents or agreements on which the debt is based and providing an ultimatum that if the debt is not paid with a defined time frame a action will result such as a referral to a debt collection agency or to legal action.

How do I send a letter of demand?

It is quite simple. All you need to do is to collect the appropriate details of your debt such as the address of the debtor, invoices, contract documentation and any other details which allow you to prove the debt then you put this into a letter of demand. We have letter of demand templates available here on the site for you to purchase for this purpose.

What is the rate of sucess of letters of demand?

Anecdotally, we have experienced a high rate of sucess with letters of demand which are well targeted and well drafted. In general, most debts are not paid because of poor adminstration or memory, not being recalcitrant or morally repugnant in some way. For this reason often a letter of demand is all that is needed to remind somone of their obligation to pay their debt to you. The debtors who are genuinely difficult and will dispute their debts, fight, prevaricate and equivocate about paying are in the minority although where a debtor has this type of attitude, legal action does often result.

What do I do if I have received a letter of demand?

This can can mean one of two things, either you have been charged incorrectly by one of your suppliers and they are now seeking to have your account recovered on a wrongful basis or you do actually the debt. If you actually owe the debt and you can pay, obviously the quickest and simpliest action you can take is to pay the debt and the problem goes away. If you cannot pay the debt because of a cashflow problem you may have some very serious consequences to deal with such as facing the possibilty that you or your company is insolvent. If you need advice on a matter like this, we recommend seeking professional advisors online.

Letter of Demand Resources

Letter of Demand Templates – Buy a Final letter of Demand Template

Debt Collection Letter Resources

• Draft Letter Of Demand Learn tips and tricks for drafting a letter of demand.
• Letter of Demand Form - aid to drafting a letter of demand A letter of demand form can assist you in recovery of debt. It is the last step in the debt recovery process before the commencement of debt collection legal proceedings.
• Letter of demand legal Find out about the legal asepcts of a letter of demand. What makes a legal letter of demand different?
• Letter of demand templates Information about letter of demand templates. How to use a letter of demand template.