Demand Letter

Before going to court, it is wise to send the other party a short, clear letter demanding payment. It may seem too good to be true that a simple letter can result in the other side paying what you ask or agreeing to an acceptable compromise. However, demand letters initiate a successful resolution in as many as one third of all potential disputes.

Most people who know they owe you money expect you will not pursue them. Things often change when an attorney writes a firm letter, called a demand letter, laying out the reasons why the other party owes you money and stating that if you fail to get satisfaction you plan to go to court. For the first time, the other party must confront the likelihood that you will not go away but plan to have your day in court. They must face the fact that they will have to expend time, energy and money to publicly defend their position.