Q & A Series: Do You Have to Send A Letter of Demand?
We here at VRT Lawyers are often asked whether a letter of demand is necessary when engaging in debt recovery.
We thought we would ask Partner John Vizzone.
There is no legal requirement to send a letter of demand when you claim you are owed money. However, often a letter of demand is a cost effective way of either forcing the party to pay or to bring the matter to a head to ascertain the issue before commencing proceedings. Commencing proceedings in Court does carry some costs and risks and if you can obtain payment prior to that you are in a much better position.
A letter of demand is simply a letter asking the debtor to pay.
The letter of demand should be set out in a simple, clear and concise manner and contain the amount owing and a time for payment.
If you need assistance in drafting and sending a letter of demand or if you wish to recover money owed to you in Court you should contact us immediately. If you have any queries for John Vizzone please do not hesitate to contact him on 9667 1271 or email at email@example.com