Debt Demand Letter

A Demand Letter is used to demand payment or settlement from another party at the threat of litigation.

How it works

Choose Document
Build your selected document.
Answer Questionaire
Answer a few simple questions with step-by-step instructions.
Download and Print
Print & download forms instantly. Sign & make it legal.

In the event of a breach of contract, the quickest way to settle a dispute is to issue a Demand Letter, which implies litigation if the demand is not satisfied.

If someone has a legal obligation towards you that they haven't fulfilled, a carefully drafted Demand Letter on your part can set everything in motion leading to a legal claim.

What Is a Demand Letter?

You can use a Demand Letter for several purposes. Most commonly, however, it is a request for payment or debt owed. This type of Demand Letter should explain the debt incurred, the amount due, and the original due date.

You can use a Demand Letter for any demand, such as reminding a company or person of a failure to deliver a service paid. After the letter is sent, you can expect the recipient to comply or submit a counteroffer, after which you can attempt to settle.

Other Names for Demand Letter

Depending on your state, a Demand Letter may also be known as:

  • Letter of Demand (LOD)
  • Collection Letter
  • Demand Letter for Payment
  • Debt Collection Letter

Who Needs a Demand Letter?

Essentially, anyone who has to make a demand for a debt or service owed can use a Demand Letter to do so. In addition to that, the Demand Letter is also frequently used in insurance claims. If a debtor's check was returned for NSF, you could issue a Demand Letter and demand the payment anew.

Why Use 360 Legal Forms for Your Demand Letter?

Customized for you, by you

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Demand Letter.

Specific to Your Jurisdiction

Laws vary by location. Each document on 360 Legal Forms is customized for your state.

Fast and easy

All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.

How to Create a Demand Letter with 360 Legal Forms?

Your Demand Letter should be professional and not threatening, or it could have the opposite effect you have in mind.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Demand Letter?

To create your document, please provide:

  • Sender Details: The legal name and contact information of the sender.
  • Recipient Details: The legal name and contact information of the recipient.
  • Date: The date of the Demand Letter.
  • Method of Delivery: Specify how the letter is to be delivered to the recipient.
  • Demanded Action: Explain the demand, including the amount requested, as applicable.
  • Deadline: The date when the recipient is expected to respond.
  • Additional Documentation: Attach anything else that will support the demand.
  • Signature: The sender must sign the Demand Letter.

Demand Letter Terms

  • Mediation: A type of dispute resolution outside of the courts.
  • Purveyor: The seller or supplier of goods.
  • Grievance: A reason to complain.
  • Restitution: A recompense for an injury or loss.
  • NSF: Non-Sufficient Funds (the most common sense for a returned check).
  • Counteroffer: In the context of a Demand Letter, this is the recipient's counter to the sender's demand.
  • Insurance Claim: A claim from an insurance policyholder for compensation.
  • Concession: A granted demand.
  • Coercion: An agreement by force.

Demand Letter Signing Requirements

As the sender, you must sign the Demand Letter. Notarization is not necessary.

What to Do with Your Demand Letter?

After you have printed out your Demand Letter created on 360 Legal Forms, sign it and save a copy for your records. The best way to deliver the Demand Letter is to let your attorney handle it, show it in person, or send it by registered mail or a shipping company with signature verification. Emailing or texting the Demand Letter is not recommended.

Frequently Asked Questions

In many cases, there is no need to hire legal services if the matter is relatively simple. However, in the event of a more complicated insurance claim, you might want to do just that, especially if the reward can be much larger than the cost.

If the recipient of the Demand Letter is reasonable, then you can expect a settlement. The person may take some time to respond with a counteroffer or retain an attorney. What can help in this regard is to add the settlement terms in your Demand Letter and ask the recipient to agree to it without a back and forth negotiation. Overall, the typical time frame leading to a settlement can be anywhere between two and six weeks.

A Demand Letter requires a specific tone both concise and non-threatening. The goal is to tell your side of the story supported by as much evidence as possible. If you are a landlord who is owed back rents, a lease agreement may be very helpful to include as a supporting document. Apart from being honest and truthful in your Demand Letter, it can also be helpful if your demands are reasonable and commensurate to the damages suffered.

The fact is that the recipient of your Demand Letter may choose to ignore it completely. If you do not get a response, you could press forward with litigation, which is implied in a Demand Letter as I demand this or else. You could send another Demand Letter but there is little reason to expect a better outcome the second time around.

When writing a Demand Letter, you want to avoid threatening the recipient, nor do you want to disparage or disrespect. Generally, a negative tone would likely prove counterproductive. A judge or his or her law clerk who reads your Demand Letter, if it comes to that, could form a negative opinion of you.

Why choose 360 Legal Forms?

Our exhaustive library of documents covers your personal, business, and real estate needs with all of your DIY legal forms.

Easy legal documents at your fingertips
Easy legal documents at your fingertips

Create professional documents for thousands of purposes.

Easily customized
Easily customized

Make unlimited documents and revisions. Sign online in seconds.

Applicable to all 50 states
Applicable to all 50 states

Our documents are vetted by lawyers and are applicable to all 50 states.