Final Letter of Demand
Suitable For Use : NSW, QLD, VIC, WA, NT & ACT
Final Letter of Demand
The first step in recovering a debt is a well worded letter of demand. It is helpful to recommend a client issue a demand of their own. This puts the debtor on notice that they are seriously overdue and foreshadows the matter being passed to a solicitor. After the client’s demand a formal letter of demand should come from the solicitor’s office.
Initial letters of demand should be polite so that a commercial relationship can be preserved if the non payment is merely an oversight. The intention is to let the recipient know the matter is now in the hands of a lawyer but says this in a polite way. It also increases the likelihood of payment if the initial demand is polite. Rude and overly threatening demands from the outset may have the effect of inducing a debtor to withhold payment out of spite.
In many cases a letter of demand indicating the matter has been passed to solicitors is sufficient
to induce a client to pay. In other cases more threatening letters are required. If these fail, then obtaining judgment via the court process and enforcement are required.
Letter of Demand 3
Gives a further 7 days to pay before proceedings are commenced. Outline costs of proceedings and that these may be added to the debt.
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