{"id":368959,"date":"2016-04-04T10:47:05","date_gmt":"2016-04-04T15:47:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/how-to-demand-payment-in-a-letter.html"},"modified":"2024-04-09T07:25:05","modified_gmt":"2024-04-09T12:25:05","slug":"how-to-demand-payment-in-a-letter","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/how-to-demand-payment-in-a-letter.html","title":{"rendered":"How To Demand Payment in a Letter"},"content":{"rendered":"\n
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How To Demand Payment in a Letter<\/h1>\n
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\n By Samuel Strom, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

With all the news on television about high-profile court cases, you may think that you have to go straight to court to get any results. Court can be quite expensive, however. Many times, the best first step is to compose a well-written demand letter.<\/p>\r\n

A demand letter<\/a> is a document you give to the person or entity you think owes you money. In it, you explain why you are entitled to the payment and demand it. You’d be surprised how often a simple demand letter can work without you having to go to court.<\/p>\r\n

This article provides information about why and how to send a demand letter to someone demanding money owed. Whether you think someone owes you money due to a breach of contract<\/a>, car accident<\/a>, personal injury<\/a>, or some other reason, an effective demand letter may save you lots of money in potential legal fees.<\/p>\r\n

Reasons for a Demand Letter<\/h3>\r\n

The simple reason you need a demand letter is to let the other side know that you are serious about your desire for payment. Many times, the person who owes you money thinks that you won’t pursue payment from them.<\/p>\r\n

Their feelings and thoughts may change after receiving a formal demand letter. A typical demand letter explains why you feel you deserve payment and often states that you plan on taking that person to court if you do not receive payment.<\/p>\r\n

The demand letter is often the first time that the other party realizes that you are serious about collecting the money due to you and will take them to court if necessary. The other party may realize that if they do not pay up, they will have to spend time and money defending their position.<\/p>\r\n

The demand letter may also save you from having to file formal legal action against the person you believe owes you money. Instead of suing them, the demand letter allows you to begin a negotiation process or set up a payment plan with the other person. It also shows the court that you made a good-faith attempt to resolve the issue before filing any lawsuit.<\/p>\r\n

The Structure of a Demand Letter<\/h3>\r\n

Although every demand letter is different, this section provides a general overview of the essential aspects of a payment letter.<\/p>\r\n