What is a letter of demand?

A letter of demand is sent to a person or business who owes you money (a debtor) following the supply to them of goods or services (e.g. sale of a good or performance a fee or service).

The letter advises the debtor of the amount outstanding and threatens court action to recover the debt if it is not paid within a certain time.

The objective of sending a letter of demand is two-fold. 

Firstly, it warns the debtor of the intention to commence legal proceedings unless payment is made and gives the debtor one last opportunity to pay and make good on the debt.

Secondly, the letter is a document which may be tendered in evidence during court proceedings as written proof of your claim of the debt owed and your attempt to settle the matter.

For legal issues concerning debt recovery, contact the team at G&B Lawyers.

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Mail: GPO Box 1849, Sydney, NSW 2001

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