Letter of Demand (1st attempt)
A Letter of Demand (1st attempt) can be used to formally request payment of an outstanding debt.
4.6 (31 reviews)
Last updated October 24, 2025
Under 3 minutes
Written by Edwin Montoya Zorrilla
Reviewed by Damin Murdock
Document Overview
A Letter of Demand can be used to formally demand recovery of a debt owed to you following the supply of goods or services. Use this Letter of Demand after a person or business has failed to reply to your previous requests for payment and you intend to commence court proceedings over the claim.
The Legal Risk Score of a Letter of Demand (1st attempt) Template
Suitable for Australia
Our legal team have marked this document as low risk considering:
- The document does not specify the nature of the debt or provide detailed context for the outstanding amount, which could lead to misunderstandings or disputes regarding what is being requested for payment.
- The document does not clearly identify the recipient, which might cause confusion about who is obligated to make the payment and to whom the payment should be directed.
- The document does not outline any potential consequences or actions that will be taken if the payment is not made by the specified deadline, potentially weakening the enforcing power of the letter.
Letter of Demand (1st attempt) Checklist
Complete your free Letter of Demand (1st attempt) with our checklist
Verify Recipient Information
Ensure that the recipient's details are correct and clearly stated to avoid any confusion about who is obligated to make the payment.
Clarify Payment Details
Include specific details about the nature of the debt and any additional relevant information to avoid disputes and misunderstandings.
Outline Consequences
Mention potential consequences or actions that will be taken if the payment is not made by the specified deadline to emphasize the seriousness of the demand.
Follow-Up Communication
Plan for a follow-up if the payment is not received by the deadline, either through a reminder letter or a phone call, to maintain pressure and ensure compliance.
Use this Letter of Demand if:
- You would like to formally request payment for an outstanding debt;
- You have made previous attempts to recover the debt; and
- You are preparing to take legal action over the outstanding amount.
What does the Letter of Demand cover?
- Date of the Letter of Demand;
- Amount of the outstanding debt owed;
- Date the debt was due; and
- Description of what the debt is owed for.
Other names for Letter of Demand include:
- Debt Recovery;
- Demand for Payment; and
- Debt Collection Letter
What’s the difference between a Letter of Demand and a statutory demand?
A Letter of Demand (Debt) can be used to formally demand recovery of a debt owed to you following the supply of goods or services. A statutory demand is a document sent by a creditor to a debt company requesting the debt be paid within 21 days. It is worth noting that a statutory demand is a frequent source of litigation, and can only be issued when the due debt is over $2,000.
At what point should I issue a Letter of Demand?
A Letter of Demand is usually sent when numerous attempts to get your invoice paid have been unsuccessful. A Letter of Demand warns the other party that your demand for payment of outstanding money is the final opportunity before you take the matter further.
What response should I expect from a Letter of Demand?
A response to a Letter of Demand may include the following:
- admission to an owed amount and a date in which debt would be paid;
- a request for further clarifications on the amount owed;
- a denial to owing the requested amount;
- an offer to pay a different amount; or
- an offer to pay the amount in instalments.
Should a Letter of Demand be sent from a lawyer?
A Letter of Demand officially informs the debtor of your legitimate claim for payment and intention to take legal action if the debt is not paid. The lawyer can make sure the letter is professionally written to elicit compliance and assure claims are legitimate if the letter to be used as evidence in later court proceedings. Another benefit to having a lawyer draft your letter of advice is the firm’s letterhead. A firm’s letterhead is a powerful persuader for the debtor to pay their debt promptly and assure it is taken seriously.
Other documents you may need:
Further information
View Sample Letter of Demand (1st attempt)
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