Free Demand Letter for Payment Template
Free, editable, and written for Michigan. Opens in Word, Pages, or Google Docs.
Quick Answer
What is a demand letter and does it work?
A demand letter is a written notice telling someone exactly what they owe you, why they owe it, how to pay, and what you will do if they do not. It is usually the last step before filing suit, and it resolves a surprising number of disputes because it shows the other side you are organized and serious. In Michigan, small claims court handles disputes up to $7,000 without lawyers, and most written-contract claims must be filed within six years of the breach. Send the letter by a method that proves delivery, keep a copy, and stay factual. This free template is a generic starting point, not legal advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.
What this document does
- A clear, dated letter stating the amount owed, the reason, the deadline, and the consequence.
- Evidence: a judge can see you gave the other side a fair chance to resolve it.
- Often required or expected before filing in small claims or district court.
What Michigan requires
- Michigan small claims court hears money disputes up to $7,000. Attorneys generally do not appear, and the parties give up the right to a jury and to appeal.
- Larger claims go to district court (generally up to $25,000) or circuit court above that.
- Most written-contract claims must be filed within six years of the breach. Waiting too long ends the claim.
- If you are a business collecting your own debt, you are generally not a 'debt collector' under the federal Fair Debt Collection Practices Act, but Michigan's regulatory occupations statute still restricts abusive collection conduct. Keep the letter factual and non-threatening.
- Never threaten criminal charges, arrest, or anything you cannot lawfully do. That can turn your valid claim into their claim against you.
- Interest and late fees can usually be demanded only if a contract or statute allows them.
How to sign and deliver it
- Sign and date the letter yourself, or as an authorized officer of your business.
- Send it by certified mail with return receipt requested, and also by email if you have one on file.
- Keep the signed copy, the mailing receipt, and the green card or tracking record together.
- Give a real deadline — 10 to 14 days is common — and follow through on what you said you would do.
Mistakes people make
- Writing an angry letter instead of a factual one. Judges read these.
- Not itemizing the amount, so the reader can argue about the number.
- No deadline, or an unreasonably short one.
- Sending it by a method with no proof of delivery.
- Threatening consequences you will not or cannot carry out.
- Attaching no supporting documents — invoices, the contract, texts confirming the debt.
Frequently asked questions
Keep reading
Reviewed and updated by the Clear Path document team. Informational only — not legal advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.