Letter of Demand
Letter of Demand Chatswood
Low cost, Fast, Simple Letter of Demand service
You have tried everything, but you still haven’t been paid?
Contact TY Lawyers for a low-cost Letter of Demand service, the first step towards debt recovery.
For an affordable price we will issue a formal legal letter that gives a final warning directly to your debtor, stating that if the owed amount is left unpaid after 7 days, that legal action will be taken.
Over 80% of debtors respond to this letter.
Please fill in the form below to begin your debt recovery process, it only takes 5 minutes, and one of our friendly debt recovery team members will get in touch with you shortly.
7 Days after Letter of Demand
Instruct us to take legal action
While over 80% of the debtors would have responded to this letter, sometimes people who choose to ignore the letter, or they may not understand the legal implications of receiving the such letter.
After 7 days have elapsed after the Letter of Demand is sent to the debtor, we will contact you to seek instruction.
Once you confirm to take legal action with us, we will immediately prepare the Statement of Claim and file a civil case to the Courts. It requires the debtor to not only pay the amount of the debt, but also the disbursements, statutory interest (if the debt is more than $1000) and a prescribed amount of legal costs to our solicitor. Once served, the debtor has 28 days to pay the debt.
28 days after Statement of Claim
Further legal enforcement action
If the debtor chooses to also ignore the Statement of Claim, we will apply a Default Judgment to the Court, which usually takes 4-6 weeks.
Once we obtain the Default Judgment, the debtor is required to pay all of the above outstanding amounts and any legal costs and Court filing fees incurred in the debt recovery process.
If the debtor fails to respond to the Court order, a liquidator may be appointed to sell the debtor’s assets to repay the debt.
In some extreme cases, the debtor may be advised to begin the liquidation of their business, or file for bankruptcy.
Being served a Letter of Demand?
I received a Letter of Demand, what should I do?
Your strategy to respond to a Letter of Demand will differ depending on your reasons for disputing.
In response you can pay the owed amount if it is correct. However, if the quoted price appears to be incorrect, your options are to ask for more information or deny that you owe the said amount and explain why.
While responding to the letter, you must ensure you do not say anything that could be used against you in court.
When your response is received, the other party will choose how to action it.
It is highly important that you do not ignore a Letter of Demand, as it is a legal letter that could have an imperative impact on you, or your business.
What if my business is insolvent?
Every insolvency case is different but one thing in common is that they all have many deadlines and are all extremely time-sensitive. Failure to respond to an insolvency case could potentially lead to losing your possessions and losing the ability to protect your interests.
It is important to seek help if your business is experiencing cash flow issues and is heading into insolvency.
As times get worse, ceasing business operations and entering liquidation may be the answer to pay off your debts, however it is important to try other solutions before accepting that your business has come to an end.
Having someone you trust can trust and communicate strategies with face-to-face is essential throughout the process.
Our experienced team at TY Lawyers can help you. We will work to find a solution for your business.
Letter Of Demand FAQs
Can a letter of demand be emailed?
The purpose of a letter of demand is for the breaching party to be notified of such breach and the opportunity to rectify. Due to this, it is very important that the letter is seen.
In order to ensure that your letter of demand is received and seen, you should always send your letter of demand via both email and post. A letter of demand should always be sent via email; however, in some cases the breaching party may not check their emails, it might go to spam, it could be marked as read, etc. For these reasons it’s important to use both mediums.