What Happens After You Send a Demand Letter?

You've written your demand letter, sealed the envelope, and sent it via certified mail. Now what?

The waiting period after sending a demand letter can feel stressful, but knowing what to expect makes it manageable. Here's a complete timeline of what typically happens and how to handle every scenario.

The Typical Timeline

Here's what a typical demand letter timeline looks like:

Days 1-3: Delivery

If you sent via certified mail, delivery typically takes 2-3 business days within the continental U.S. You'll get a tracking notification when it's delivered, and a signed return receipt card (green card) in the mail within a week or two.

Days 3-7: Initial Reaction

The recipient reads your letter and decides how to respond. If it's a business, the letter may get routed to a manager, owner, or legal department. Individuals may sit on it for a few days while they think.

Days 7-14: Response Window

Most demand letters set a response deadline of 10-30 days. The most common is 14 days or 30 days. During this window, you might receive:

• A phone call wanting to discuss
• A written response (letter or email)
• A payment
• A counteroffer
• Nothing (silence)

Day 14-30: Deadline Approaches

As the deadline approaches, you should be preparing for your next move. Don't send follow-ups during the response period unless you have new information to share.

Day 30+: Decision Time

Your deadline has passed. Time to decide whether to escalate, negotiate further, or walk away.

The 4 Possible Responses

Every demand letter results in one of four outcomes. Let's cover how to handle each one.

Scenario 1: They Pay in Full

This happens more often than you might expect, especially with:

• Security deposit returns (landlords know the law is on your side)
• Clear debts with documentation
• Business disputes where the company values its reputation
• Situations where the cost of fighting exceeds the demand amount

What to Do:

1. Verify the payment: Wait for the check to clear or the wire to hit your account.
2. Document it: Keep records of the payment for your files.
3. Consider a release: If they ask you to sign a release or settlement agreement, read it carefully. Make sure it only releases claims related to this specific dispute.
4. Don't gloat: A professional "thank you for resolving this matter" note is sufficient.

Scenario 2: They Want to Negotiate

This is the most common positive outcome. They respond with a counteroffer, payment plan proposal, or request to discuss.

Typical Negotiation Scenarios:

• Partial payment offer: "We'll pay $2,000 of the $3,500 you're demanding."
• Payment plan: "We can't pay it all at once, but can do $500/month."
• Dispute some items: "We agree we owe you for X but not Y."
• Request for documentation: "Can you provide receipts for the damages?"

How to Negotiate Effectively:

1. Respond professionally: Even if their offer is insulting, stay calm. This is business, not personal.
2. Get everything in writing: Don't agree to anything verbally. Follow up phone calls with an email confirming what was discussed.
3. Know your bottom line: Before you start negotiating, decide the minimum you'll accept. A guaranteed $2,500 today is often better than a uncertain $3,500 months from now.
4. Consider the cost of alternatives: If going to court would cost you time, filing fees, and stress, accepting a reasonable settlement may be the smarter financial move.

Scenario 3: They Dispute Your Claim

They respond by rejecting your demand and offering their own version of events.

Common Dispute Responses:

• "We don't owe you anything because..."
• "Your claim is without merit because..."
• "We have a counterclaim against you for..."
• A letter from their attorney threatening counter-action

How to Handle It:

1. Don't panic: A dispute doesn't mean you're wrong. It means they disagree. That's normal.
2. Evaluate their arguments honestly: Do they raise any valid points you hadn't considered?
3. Review your evidence: Is your documentation strong enough to win in court?
4. Consider mediation: A neutral third party can sometimes break a deadlock. Many small claims courts offer free mediation before trial.
5. Decide whether to escalate: If your claim is strong, this may be where you file in court.

Scenario 4: They Ignore You

Silence. Your deadline passes with no response at all.

Why People Ignore Demand Letters:

• They're hoping you'll give up
• They're consulting an attorney
• They can't pay and don't know what to say
• They never actually received it (check your tracking)
• They don't take the threat seriously

What to Do:

1. Confirm delivery: Check your USPS tracking to verify it was delivered and signed for.
2. Wait 5-7 days past your deadline: Give a small grace period.
3. Send a brief follow-up: One short notice stating you haven't received a response and will proceed with your stated next steps.
4. Follow through: This is the critical moment. If you said you'd file in court, file in court. If you threatened to report to a licensing board, file the complaint.

Your Next Steps If the Letter Doesn't Work

1. Small Claims Court

For claims under your state's limit (typically $5,000-$10,000), small claims court is your most practical option. Filing fees are usually $30-$75, lawyers are often not required, and cases are decided within weeks.

2. Mediation

A neutral mediator helps both sides reach a voluntary agreement. Many communities offer free or low-cost mediation. It's faster and less adversarial than court.

3. Regulatory Complaints

Depending on who you're dealing with:

• Businesses: File with your state's attorney general consumer protection division
• Contractors: Report to the state licensing board
• Landlords: File with the housing authority or building department
• Employers: File a wage complaint with your state labor department or the DOL

4. Collection Actions

For clear debts, you can report the debtor to credit bureaus (for business debts) or hire a collection agency (which typically takes 25-50% of what they recover).

5. Civil Court

For claims above the small claims limit, you may need to file in regular civil court. This is where hiring an attorney becomes more important, as the process is more complex.

Key Takeaways

• Most responses come within 7-14 days of the demand letter being received
• The four outcomes are: full payment, negotiation, dispute, or silence
• If they negotiate, getting 70-80% of your demand is generally a good settlement
• An ignored demand letter is actually evidence in your favor in court
• Always follow through on your stated consequences when the deadline passes
• Small claims court is the most practical next step for claims under $10,000

Related Articles

• How to Send a Demand Letter
• How Long Does Someone Have to Respond to a Demand Letter?
• Do Demand Letters Work?
• Small Claims Court Demand Letter Guide