Q:

What are letters for money owed?

A:

Quick Answer

Letters for money owed are documents that someone who is owed money provides to the individual who owes the money. The letters state that if the money is not paid within a certain time frame, the person who is owed money will take the matter to court, notes FindLaw

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Full Answer

The reasoning behind a letter for money owed ? also known as a demand letter ? is letting the debtor know the creditor is serious about his desire for payment. A letter for money owed should outline the situation that created the debt; this information can be helpful if the matter ends up in court. A demand letter should be polite and worded in a way that does not anger the other party. It should be written in a business-like manner. The letter should state what the other party stands to lose if the debt is not satisfied as requested, notes FindLaw.

A demand letter should also outline what the creditor is looking for, such as how much money he will take to satisfy the debt and when the money is owed. The letter should then threaten any alternatives, such as the threat of the matter going to court if the debtor does not pay the debt as the demand letter requests.

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