There may be times when you need to take legal action to recover money that is owed to you. One way you can deal with these kinds of financial problems is by issuing a Letter of Demand. Whilst you may legally write one yourself, there are a number reasons why you may need a lawyer to write a Letter of Demand instead.
What is a Letter of Demand?
A Letter of Demand is a document sent from one party to another when one party has unsuccessfully tried to obtain money owed to them through normal invoicing procedures. Often this is the final reminder letter before taking legal action. The Australian Government Business website contains guidelines for businesses on this topic. A letter of demand will usually include the following things:
- The amount owing
- The due date of payment
- A warning of pending legal action
- Payment plan options
- Copies of prior requests of payment or invoices
- Additional late payment stipulations
Benefits of having it written by a lawyer
Lawyers study many years for a reason. Accordingly, they are very skilled at what they do. Seeking their help can be extremely useful. It is just a matter of working out when and where it is of most benefit to you. Some of the benefits of seeking the help of a qualified legal professional include:
- It is more likely to cover all the required points. Whilst you may be capable of forming a comprehensive and well articulated letter, there is no substitute for having the nous of a qualified legal professional to cover all bases
- If the situation continues to escalate, you will have had a lawyer across the problem from the outset
- The reality is that it can carry more weight on a legal letterhead, and may mean a debtor is more likely to pay
- It can help set a strong standard for future dealings, and perhaps deter the same impropriety in future
Benefits of doing it yourself
Even though lawyers are very good at dealing with these kinds of situations, you may have some diplomacy skills of your own. Sending a Letter of Demand yourself can have the following benefits:
- It can be less inflammatory. Oftentimes, lawyers can increase the hostility in a dispute, and perhaps unless it is absolutely necessary, it can be good to deal with problems yourself to keep the peace
- It may be better for business overall, especially if this is a working relationship you seek to preserve
- It will cost you less. However, you must remember that whilst it may cost you less initially, if it is an on-going problem, it may cost you more of your time in the long run
- It is a good way of getting to know how to handle problems in your business
Being a self-represented litigant and taking matters into your own hands may be cost effective, but it is also risky. Whilst you can legally write one yourself, you may end up in further difficulty trying to do everything on your own. Accordingly, it is recommended you seek the help of a legal professional if you are unsure about your situation.
