A demand letter from an attorney for collection of debt is a formal notice sent to a debtor by a lawyer on behalf of their client to request the payment of an outstanding bill. It provides details of the debt in default, including the date it was accrued and the total amount. Depending on the timeline, the letter could also threaten legal action or inform the reader that such actions are already in place.
Collecting a dent is one of the toughest things to do, especially if you don’t enjoy having conversations about money. Fortunately, you don’t have to, as your attorney can do it for you more formally and effectively. Read on to find out what you need to know to draft this letter.
Types of Debt Collection Letters
The typical Demand Letter from Attorney for Collection of Debt has two functions: it alerts a debtor to a defaulted payment and demands that they cure the problem. This can be achieved through one of two forms, which are:
General Reminder Letter
The general reminder demand letter is usually the first attempt to collect a debt from a debtor and adopts a friendlier tone. It details the date, amount, and nature of the debt and requests that the reader pay it, but may not include a timeline or consequences. Depending on the organization, an attorney can send 2 to 3 general reminder letters.
Final Demand Letter
The final demand letter follows the general reminders and takes on a harsher, bit professional tone. it usually includes the following details:
- The full debt amount
- Interest costs
- Mention of previous attempts to collect
- A deadline for settling the debt
- Consequences of non-payment
Features of a Demand Letter from Attorney for Collection of Debt
While there are no strict rules for drafting a debt collection letter, it must contain certain details to be effective. Including this information ensures you communicate your demand to the writer in a way that allows them to cure the debt without a lot of back and forth. The information includes:
- A reminder of the total debt amount
- The nature of the debt i.e. what the payment is for
- Any interest costs accrued due to the delay
- A timeline and deadline for curing the debt
- Consequences of non-compliance, which could include forwarding the debt to a collection agency, filing a lawsuit, or taking the claim to small claims court.
Demand Letter from Attorney for Collection of Debt (Format)
{Date}
{Debtor’s Name}
{Debtor’s Address}
{City, State, Zip Code}
Re: Overdue Payment
Dear {Mr./Mrs./Ms. Last Name},
We at {law firm name} are writing on behalf of our client, {client name}, to inform you of an overdue payment you owe our client. According to the invoice attached herein, you owe {client name} a sum of {insert date amount} for {mention sold services/product}.
As of the writing of this letter, said debt is {duration} overdue, and the inconvenience will result in {mention interest charges if applicable}. This brings your total to {total debt amount}.
This letter is a request that you pay the debt by {provide deadline}, or we will be forced to {mention consequences of non-compliance}.
If you have any questions regarding this demand, contact us at {contact information}.
Sincerely,
{Attorney’s Name}
{Law Firm Name}
{Attorney’s Signature}
Sample Demand Letter from Attorney for Collection of Debt
20 March 2031
Grace Fuquay
230 Indigo Lane
Hartford, CT 00987
Re: Pay Upon Receipt
Dear Mrs. Fuquay,
We at Garber, Garber, and Kingston are writing on behalf of our client, James Fraser, about an overdue payment. On 1 February 2031, you had your vehicle serviced at Fraser Motors, for which you were supposed to pay $3,000. You are yet to make this payment.
Consider this a demand for the overdue payment to be cured within the next 7 business days. If you have not contacted out client by 27 March 2031, we will be forced to take legal action against you.
Prompt attention to this matter will be appreciated.
Sincerely,
Hillary Garber
Attorney, Garber, Garber, and Kingston
Demand Letter from Attorney for Collection of Debt (Word Template)
Bottom Line
Sending a Demand Letter from Attorney for Collection of Debt is a surefire way to ensure your debt is paid. It sends a serious message to the debtor that there will be dire legal consequences to them not complying with the demands laid out by your attorney. For this reason, the letter should adopt a formal and professional tone, as well as not include any aggressive language.
