A well constructed demand letter can be a very powerful document.

Demand letters can be formal letters written by an attorney on behalf of a client

demanding payment or some other action from another party. They can also be less
formal and written by one individual to another demanding payment. In both instances
they are an attempt to avoid litigation and expedite a resolution.
Find more sample demand letters here>>
While demand letters may be written for several reasons, most are written when
someone owes you money. There is no single format for drafting a demand letter but
there are certainly guidelines that can help you draft an effective one. If done correctly,
a demand letter can be just the thing to persuade the other party into paying up.
In general a demand letter includes: 1) what payment or action is demanded; 2) why the
payment or action is being demanded; 3) what are the consequences for non-payment;
and, 4) a time limit time limit to comply with the demand letter.
Before you begin putting the letter together, consider the relationship you have with the
person who owes the money. Is this a friend or relative. Is it important to maintain a
personal relationship with that person? Is it a contractor, business, or individual with
whom you may have future dealings? This consideration is important because it will
help to determine the tone of the demand letter. If you are not going to hire an attorney
to do this for you, its important to draft the demand letter with as little emotion as
possible. As they say, stick to the facts.
The first part of the letter will be a review of the facts that led to the writing of the letter.
The facts are important because this is the basis of your demand. Getting the facts
straight now is also good preparation should the matter end up in court.
Next you will need to discuss why the person owes you money. Did you do a job for
him/her and they never paid you? Did he/she borrow money and refused to pay you
back? Did they destroy your property and refuse to pay you? This section should be clear
and concise.
Then you will outline what the consequences will be for non-payment. Remember here
that you catch more flies with honey than vinegar; so you want to be polite and
respectful. The demand letter is by nature a threatening document so theres no need
to express any extra hostility. Hopefully this will help you reach some agreement.
Perhaps, instead of threatening to take them to court, you could suggest meeting to
discuss options or perhaps enter mediation. Remember that an angry letter may bring

about an angry response and further delay the resolution. If the goal is to put the matter
to rest as quickly as possible, writing a nasty demand letter is not the right approach.
Finally, the last component of the demand letter should be a time limit. Give him/her a
reasonable time frame to pay the debt or agree to a payment schedule. Make it very clear
that he/she must respond to the letter within a set time period. If you leave it
ambiguous, you are setting yourself up for further delays.
The Law Insider Sample Demand Letter
Joe
75
Pittsburgh,
(412)
jo@yourmail.com

Debt
PA

Owe
Lane
15216
555-2176

21 June 2010
Dear Mr. Owe:
In June of 2009 I painted your home for a contract price of $10,000. While you made
the first two of the contract payments as agreed, you have refused to make the final
$3,500 payment. I have made repeated attempts to collect, but you have not come
forward with the money. I am requesting that you make the payment in full by 21 July
2010, or make specific arrangements to pay the balance.
I will expect a response to this letter no later than 1 July 2010. If this matter is not
resolved by the time specified above, I reserve the right to commence legal proceedings
to recover the debt without further notice to you and this letter may be tendered in court
as evidence of your failure to pay.
Sincerely,
Pat
56
Pittsburgh,
(724)
ps@mymail.com

Money
PA

Smith
Way
15226
555-6712