This blog we will
be looking at the first step in recovering monies owed to you.
In New South Wales if you have sold something, such as over the Internet and
you have not been paid for it, or you have provided a service to someone who
has not paid you, you may have to commence Debt Recovery Proceedings in order
to satisfy this outstanding debt.
Letter of demand
A letter of demand is the first step in Debt Recovery
Proceedings. The idea of this letter is to set out to the debtor in no
uncertain terms:
1.
How much money is owed to you; and
2.
The period of time which the debtor has to pay you,
usually seven (7) days.
This letter should also set out the fact that if the money
is not paid to you within this period of time then you will look to commence
court proceedings against the debtor without further notice to them.
Sometimes, plaintiffs choose to indicate that they are
willing to negotiate with the debtor, an example may be providing the debtor
with an opportunity to pay off the debt in instalments.
It is important to remember to keep a copy of your Letter of
Demand as it may be necessary to produce this letter in court as proof of your
attempts to settle the matter before resorting to litigation.
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