Issuing a Letter of Demand

If someone owes you money and won’t pay, going straight to court is rarely the sensible first move. Litigation is slow and expensive, and the legal costs can easily outstrip the debt itself. A letter of demand is usually the better starting point — a formal, lawyer-drafted notice that often prompts payment without a claim ever being filed.

A letter of demand is sent to the debtor and clearly sets out three things: the basis of the debt (what it’s for and how it arose), the exact amount owing, and a deadline for payment — commonly 7 or 14 days from receipt. It also puts the debtor on notice that if payment isn’t made by the deadline, legal proceedings may follow, potentially with the debtor liable for further costs and interest.

The value of a demand lies partly in its tone. Coming from a solicitor on a law firm’s letterhead, it signals that the creditor is serious and prepared to escalate — which is often enough to move a debtor who has been ignoring informal reminders. It also creates a clear record that a proper demand was made, which matters if the dispute does end up in court.

If the debt remains unpaid after the deadline, the next step is a commercial judgment call: whether the amount, the debtor’s ability to pay, and the likely recovery justify starting proceedings. We help clients weigh that up rather than simply issuing claims, so you don’t spend more chasing a debt than it’s worth.

Brooklyn Lawyers assists clients with debt recovery from the first letter of demand through to court proceedings and enforcement, and can advise on the most sensible course for your situation.