Debt Recovery

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Letter of Demand

If you are unsuccessful in recovering the debt by consultation you may wish to issue a letter of demand to the person who owes you the money (including a company) requesting that they pay you the outstanding amount by a certain date. Either you or your solicitor can draw up a letter of demand.

The letter should state details of the debt and also warn the person that legal action will be commenced if they do not pay by the prescribed date.  Before issuing a letter of demand it is important that you evaluate the consequences of taking legal action. If you prefer not to send a letter of demand a less formal letter requesting payment may be more appropriate.

The letter of demand may be later produced as evidence that you tried to recover the debt if legal action is taken.Writing a letter of demand when pursuing a debt

In the case where you are trying to recover a debt from a company you may also issue a statutory demand if you receive no response from your letter of demand. A statutory demand is a formal version of a letter of demand set out similar to a Court document. A statutory demand indicates that legal action is imminent if the debt is not paid within 21 days. Either you or your solicitor can draw up a statutory demand.

At this point in time if the debtor does not respond to your written request/demand you may consider taking legal action.