By Lei Jiang, Esq., Lei Jiang LLC.
Neither panic nor ignore it. A demand letter is not a lawsuit — it is a warning that one may come — but the deadline in it is real, and ignoring it is the one move that reliably makes things worse.
First, read it for three things: who claims what, how much they want, and the deadline to respond. Put that deadline on your calendar the day the letter arrives. Second, do not put anything in writing that admits fault or agrees to pay before you understand the claim — a hasty apology or a partial payment can be used against you later. Third, reply in writing before the deadline, even if only to say you received the letter and are reviewing it with counsel. If you do not already have an attorney, contact one promptly — before you reply to the substance of the claim. Silence reads as indifference and invites a filing. Keep the letter, the envelope, and everything related to the dispute.
The practical takeaway: deadline first, nothing in writing that concedes the claim, and contact an attorney before the clock runs out — a short, timely reply costs little and often prevents a lawsuit. If the deadline is only days away, or has already passed, say so in your reply and ask for a short extension in writing. And do not ignore a letter just because you believe the claim is wrong — being right is a defense to raise, not a reason to stay silent.
Questions? Contact us at info@leijianglaw.com or (440) 835-2271, or book a free 15-minute call: https://calendly.com/leijianglaw-info/15-minute-consultation
This article is general information, not legal advice for your situation.