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Demand Letter Template

A demand letter serves as an official notice requesting money, possession of assets, or action on a legal matter. Generally speaking, it demands something from someone else before legal action is taken.
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Small Claims Limits ($) By State – The maximum allowable amount ($) to enter into a small claims proceeding by State.

By Type (22)

 

How to Send a Demand Letter (5 steps)

1. Decide the Demands

creditor considering what to ask in demand letter

For a breach of contract, the demand should outline how the defendant violated their agreement and, if immediate harm is being caused, how an injunction may be filed in conjunction with filing for damages.

2. Calculate Losses

creditor using calculator to determine amount owed

Gather all necessary documents to ensure proof of money owed or breach of contract.

Samples: Signed agreements, receipts, invoices, law enforcement records, evidence of work, and copies of returned checks.

3. Timeframe to Respond

closeup of manila envelope with us postal service certified mail receipt

The demand letter should provide a clearly written deadline for the recipient, often 30 days.

USPS Certified Mail: Upon delivery, a signature is required by the defendant, which will be sent back to the plaintiff as proof of receipt.

4. File a Lawsuit (if Defendant is unresponsive)

creditor filing lawsuit online using laptop

If the defendant does not respond, legal action is necessary to make a claim against the individual or entity.

Breach of Contract

  • County (Superior) Court: For all breach of contract matters. This includes filing a TRO (temporary restraining order) or injunction if immediate action is needed.

5. Judgment is Rendered

creditor reading response letter with phone in hand

If the court rules in favor of the plaintiff, it commonly gives the defendant 30 days to make payment or file an appeal.

Defendant Refuses to Pay

If the defendant does not pay within the 30-day period, the plaintiff can file a Writ of Execution with the local court.

After filing, it will be served through the local Sheriff’s Dept., which allows the plaintiff to file a lien, garnish wages, or seize assets.

How Long Does a Settlement Take?

For small claims matters, it can take between 1 to 2 months to get a court date, depending on the jurisdiction. For example, it takes 20-70 days to schedule a hearing in Los Angeles County.[1]

Small Claims Limits ($) By State

State Maximum Amounts ($) Statute
 Alabama $6,000 § 12-12-31
 Alaska $10,000 § 22.15.040
 Arizona $3,500 § 22-503
 Arkansas $5,000 “Guide to Small Claims Court”
 California $10,000 for individuals or sole proprietors, $5,000 for corporations and other entities. § 116.210-116.270
 Colorado $7,500 § 13-6-403
 Connecticut $5,000 § 51-15(d)
 Delaware $15,000 § 9301
 Florida $8,000 Rule 7.010(b)
 Georgia $15,000 § 15-10-2
 Hawaii $5,000 § 633-27“Your Guide to Small Claims Court”
 Idaho $5,000 § 1-2208(1)(a)
 Illinois $10,000 Rule 281
 Indiana $6,000 for employment-related, $10,000 for all other matters. Rule 8(c), Small Claims Manual (2022)
 Iowa $6,500 § 631.1
 Kansas $4,000 § 61-2703(a)
 Kentucky $2,500 § 24A.230
 Louisiana $5,000 § 5202
 Maine $6,000 § 7482, “A Guide to Small Claims Cases”
 Maryland $5,000 § 4-405
 Massachusetts $7,000 § 218-21
 Michigan $6,000 § 600.8401
 Minnesota $15,000 § 491A.01
 Mississippi $3,500 § 9-11-9
 Missouri $5,000 “Missouri Small Claims Court Handbook”
 Montana $7,000 § 25-35-502
 Nebraska $3,900 § 25-2802Small Claims
 Nevada $10,000 § 73.010
 New Hampshire $10,000 § 503-1
 New Jersey $3,000 “New Jersey Judiciary Small Claims”
 New Mexico $10,000 § 34-8a-3
 New York $5,000 for City Courts, $3,000 in Town and Village Courts, $10,000 for New York City, and $5,000 for Nassau and Suffolk Counties NY Small Claims
 North Carolina $10,000 § 7A-210
 North Dakota $15,000 § 27-08.1-01
 Ohio $6,000 § 1925.02(A)(1)
 Oklahoma $10,000 § 1751
 Oregon $10,000 § 55.011-55.140
 Pennsylvania $12,000 “Bringing Suit Before a Magisterial District Judge”
 Rhode Island $5,000 § 10-16-1
 South Carolina $7,500 § 22-3-10
 South Dakota $12,000 § 15-39-45.1
 Tennessee $25,000 § 16-15-501(d)
 Texas $10,000 § 26.042
 Utah $11,000 § 78A-8-102
 Vermont $5,000 “A Guide to Small Claims Proceedings in Vermont”
 Virginia $5,000 § 16.1-122.2
 Washington $5,000 § 12.40.010
Washington D.C. $10,000 § 11–1321
West Virginia $10,000 § 50-2-1
 Wisconsin $10,000 § 799.01(d)
 Wyoming $6,000 § 1-21-201

Sample

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