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Received a demand? / Letter of demand

Received a letter of demand?

This letter cannot force you to pay anything. That takes a court order, and a court makes one only once a claim is filed and heard. But a letter that is ignored is usually followed by a claim, with costs added, so use the time it gives you.

Ask us to review it
1800 776 529

On this page: First steps Your options Good to know How we help Common questions Enquire

Four things to do first

01

Note the deadline

Write it down. If you need more time to get advice, ask for it in writing before the date passes.

02

Check the claim

Is the amount right? Have you already paid part of it? Does the contract say what they say it says? Is the debt more than six years old?

03

Gather your documents

The contract or quote, invoices, receipts, bank records, and every message about the work or the money.

04

Reply in writing, and keep a copy

Silence rarely helps.

Hand writing notes in a notebook beside a laptop

Your options

  • Pay. If you owe it, paying by the deadline ends the matter and avoids court costs. Ask for written confirmation that it is settled.
  • Offer a payment plan. If you owe it but cannot pay at once, propose instalments in writing. A plan both sides sign usually costs everyone less than a court claim.
  • Dispute it. If you do not owe it, or not all of it, say so in writing with your reasons and the documents that support them.
  • Get advice first. If the amount is large, the claim is unclear, or you have a claim of your own against them, talk to us before you reply.

Good to know

Be careful what you put in writing

Paying part of the debt, or signing something in writing that admits it, can start the six-year period again. If you dispute the debt, do not write anything that admits it. If you are unsure, have the reply checked.

If the letter crosses a line

A creditor can ask for payment firmly. It cannot harass you, mislead you about what will happen, or threaten action it has no intention of taking. For consumer debts, regulators publish the standards they expect of creditors and collectors.

If the company you run receives a statutory demand

That is a different and more urgent document, with a strict 21-day limit. See Received a statutory demand?

How we help

We read the letter and your documents, tell you where you stand, and write the reply: payment terms, a dispute, or an offer. If the matter goes to court, we can act for you there. We quote before we start.

If money is tight across all your bills, the National Debt Helpline offers free financial counselling on 1800 007 007.

Common questions

Have another question? Phone 1800 776 529 or send us a message.

Can they take me to court straight away?

They can file a claim at any time before the limitation period ends. A letter of demand is usually the last step before that, which is why the deadline matters.

Will a letter of demand affect my credit file?

A letter on its own does not. A court judgment can be recorded and may show on credit reports.

Do I have to reply?

There is no legal duty to reply, but a reply in writing creates a record. If the matter reaches court, the judge may see how each side behaved.

Law referred to

Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.

Ask us to review it

Tell us briefly what has happened. We reply within one business day, by phone, email or text, whichever you prefer.

What happens next

  1. Send the form, or call.
  2. We reply within one business day.
  3. We tell you your options and what each would cost, before any work starts.

Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.

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