Demand Payment Documents
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What is a Payment Demand Letter?
A demand payment letter is a document that demands the recipient to pay the money they owe. They are legal documents, but not all of them will be subject to court action. It can be sent by either an individual or a company in order to collect on debts such as bills, loans, taxes owed or other financial obligations. Demand letters are often used when there is no other way for the debtor to repay their debt and it’s necessary for the creditor to take more formal steps toward collection.
How is a demand payment letter useful?
Establishes the seriousness of the debt owed
Creates a record of final notice
Defines the damages and expected resolution
Often lead to prompt settlement offer or payment
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Demand Payment Letter FAQ
How much time should should I provide for payment?
That is entirely up to you, but generally, you should provide enough time for the person to come up with the payment. 10 business days is recommended.
I sent the Demand Letter & they still didn't pay, now what?
The next step would be for you to hire an attorney and start a lawsuit in court. Usually, a demand letter can help end the disagreement before it gets to the courts.
Should I take a settlement?
Taking the settlement is never a bad option. Courts can be expensive, slow and never guaranteed. Settlements are the easiest way to resolve payment disputes.