Letter of demand from a law firm to collect a debt

///Letter of demand from a law firm to collect a debt
Letter of demand from a law firm to collect a debt 2018-08-07T10:17:07+00:00

Are you looking for a law firm to send a letter of demand to a debtor for payment of money that they owe you? It is very frustrating when someone owes you money and they simply do not pay. Often they say they’ll pay by a certain date but then the date passes and you receive no money. We understand how frustrating this is. You probably worked hard to deliver goods or services to them and then they refuse to pay. The reasons vary but often the person simply claims to not have any money.

Often the process to collect a debt can be a frustrating process and can sometimes end up costing you more money without results. We can help you determine what the best way is to try to collect the debt.

What are my options?

We recommend different options depending on your specific circumstances. One of the key factors is how much money are we talking about? Usually, the first step is to send the debtor or defaulter a letter of demand. The goal is to get as much money from the debtor without spending more.

Don’t throw good money after bad

There are a number of factors to take into account in deciding what your next step is. You can read more about how to help yourself, how to write a letter of demand, the format of a demand letter and get a template on the legal aid website.

Debt less than R15,000

If the amount owed is less than R15,000 and you are a natural person, we recommend you take the debtor to the Small Claims Court (SCC). Juristic persons (companies or closed corporations cannot institute proceedings in the SCC).

The SCC is a relatively quick and easy way to get your money back. Lawyers are not allowed, so there are no legal fees. If the debt is over R15,000, you can choose to claim for a lesser amount to pursue your case in the SCC. Claims cannot be instituted against Municipalities or Local Government. The letter of demand the SCC requires is very simple. You can download it, draft it and send it yourself.

The following are excluded from the jurisdiction of the SCC:

  • claims greater than R15,000
  • claims against the State
  • claims based on cession or the transfer of rights
  • claims for damages based on defamation

Letter of demand sent by a law firm

Often a letter of demand is more effective if it is sent by a law firm or another third party. It is also usually more effective if it is tailored to your circumstances. If appropriate, we can send a letter of demand for you demanding payment of the amount owed or help you find the right professional to do it.

Interested?

If you are interested, please complete the form on the right or enquire now. We will contact you to find out more about your requirements and give you a quote.