What Happens After Sending a Demand Letter

Possible Outcomes

After sending a demand letter, several things can happen:

1. Full Payment or Compliance
Best case scenario: they pay what you asked or do what you demanded. This happens more often than you might think.

2. Counteroffer or Negotiation
They agree you have a point but offer less than you asked for, or request different terms.

3. Dispute Your Claim
They respond by denying they owe you anything or disagreeing with your version of events.

4. Request More Time
They acknowledge the debt but ask for a payment plan or extension.

5. No Response
They ignore your letter entirely.

Each outcome requires a different response strategy.

If They Pay or Comply

Congratulations! Your demand letter worked. But don't forget these steps:

Confirm Payment Cleared
If they paid by check, wait for it to clear before considering the matter resolved.

Get It in Writing
If they agreed to do something (not just pay money), get written confirmation of what they'll do and by when.

Send a Receipt
If requested, send a receipt or written acknowledgment that the matter is resolved.

Keep Your Records
Hold onto all documentation for at least a few years, in case any dispute arises later.

Consider a Release
For significant matters, you might want a signed release stating that both parties consider the matter fully resolved.

If They Want to Negotiate

Negotiation is common and often productive. Here's how to handle it:

Decide Your Bottom Line
Before responding, determine the minimum you'll accept. Going to court costs time and money—factor that in.

Respond Promptly
Don't let negotiations drag on. If they made an offer, respond within a few days.

Get Everything in Writing
Don't accept verbal agreements. Get any settlement in writing before considering the matter closed.

Common Negotiation Tactics

• They'll claim they can't pay the full amount


• They'll dispute part of your claim


• They'll try to delay


• They'll ask for a payment plan

• Total amount owed


• Payment schedule


• What happens if they miss a payment


• Both parties' signatures

If They Dispute Your Claim

A dispute doesn't mean you've lost. Here's what to do:

Evaluate Their Arguments
Are they raising points you hadn't considered? Do they have evidence supporting their position?

Respond to Legitimate Points
If they raise valid concerns, address them. You might need to adjust your position.

Don't Get Emotional
Disputes can feel personal, but stay professional. Emotional responses hurt your credibility.

Gather More Evidence
If they're denying facts you know to be true, gather documentation: contracts, receipts, emails, texts, photos, witness statements.

Consider Mediation
A neutral third party can sometimes help resolve disputed claims.

Prepare for Court
If you can't reach agreement, you may need to file in small claims court and let a judge decide.

If They Don't Respond

No response doesn't mean you've failed. It often just means they're waiting to see if you'll follow through. Here's your plan:

Wait for Your Deadline
Don't take action before the deadline you set in your letter.

Verify Delivery
Confirm that your certified mail was delivered. If it was returned, they may not have received it.

Consider a Second Letter
Sometimes a brief second letter stating "You have not responded to my demand letter dated X. This is your final notice before I proceed with legal action" prompts a response.

Follow Through
If the deadline passes with no response, do what you said you would do. File in small claims court, submit a complaint to regulators, or take whatever action you threatened.

Don't Make Empty Threats
If you threatened to sue, sue. Otherwise, future demands won't be taken seriously.

Timeline Expectations

First 1-2 Weeks
Allow time for mail delivery and their review. Don't expect immediate response.

Days 7-14
Many responses come in this window. People often wait until near the deadline.

At the Deadline
If no response, wait a day or two for mail delay before assuming no response.

After the Deadline
You're now free to take further action. You're not obligated to give more time, though you can if you choose.

Don't Wait Forever
Statutes of limitations exist. If you wait too long to file suit, you may lose the right entirely.