Letter of Demand Ignored: Here’s Exactly What to Do Next

You sent a letter of demand. The deadline passed. Nothing happened.

Here’s your exact escalation path, the timing that matters, and what each step costs.

Why letters of demand get ignored

Before you escalate, understand why the other party went silent:

• They think you won’t follow through — most people send one letter and give up
• They’re buying time — hoping you’ll forget or accept less
• They genuinely can’t pay right now — but won’t admit it
• They’re disputing the debt — but haven’t bothered to respond formally
• They never received it — incorrect address, moved premises, ignored certified mail

The reason matters less than your response. Silence is not a defence. If the debt is legitimate and you have evidence, you escalate.

Step 1: Send a final demand immediately

A final demand is the formal bridge between your first letter and legal action.

What it does:

• Restates the debt with updated interest (if applicable)
• Sets a shorter deadline — typically 7 days
• Explicitly warns of tribunal proceedings or statutory demand
• Demonstrates you are serious and prepared to act

When to send it:

The day after your original letter of demand deadline expires. Waiting signals weakness.

What it costs:

ClaimDone prepares and delivers a final demand for $97. It’s drafted using our Proprietary AI Engine, cites the applicable law, and is sent automatically via registered post and email.

What happens next:

One of three outcomes:

1. They pay — problem solved
2. They respond and negotiate — you can settle or prepare a payment plan
3. They ignore it again — you file a tribunal application

Do not send a third letter. Two formal demands is the maximum before you look unserious.

Step 2: File a tribunal application if still ignored

If your final demand is ignored, you file with the relevant state tribunal. This is not a threat anymore — it’s a legal proceeding.

Which tribunal:

• NSW: NSW Civil and Administrative Tribunal (NCAT)
• VIC: Victorian Civil and Administrative Tribunal (VCAT)
• QLD: Queensland Civil and Administrative Tribunal (QCAT)
• WA: State Administrative Tribunal (SAT)
• SA: South Australian Civil and Administrative Tribunal (SACAT)
• TAS: Tasmanian Civil and Administrative Tribunal (TasCAT)
• ACT: ACT Civil and Administrative Tribunal (ACAT)
• NT: Northern Territory Civil and Administrative Tribunal (NTCAT)

Jurisdictional limits:

Most tribunals handle disputes up to $25,000 (some states $40,000). Check your state’s current threshold.

What it costs:

Filing fees typically range from $50 to $500 depending on the claim amount and state. Most are under $200 for debts under $10,000.

ClaimDone prepares your tribunal application and supporting documents for $197. You file it yourself online or by post.

Timeline:

• Filing to hearing: typically 6–12 weeks in most states
• Hearing duration: 30 minutes to 2 hours depending on complexity
• Decision: usually on the day or within 2 weeks

What you need:

• Completed tribunal application form
• Copy of your letter of demand and final demand
• Evidence of the debt (invoice, contract, correspondence, photos, receipts)
• Proof of service (tracking details, email read receipts)

Tribunals are designed for self-represented parties. You typically do not need a lawyer for straightforward debt recovery.

Step 3: Enforce the tribunal order if you win

Winning at tribunal gives you a legally binding order. If they still don’t pay, you enforce it.

Enforcement options:

• Garnishee order — take money directly from their bank account or wages
• Warrant for seizure and sale — sheriff seizes and sells their assets
• Examination summons — force them to disclose their financial position under oath
• Bankruptcy notice (for individuals) or statutory demand (for companies) — for larger debts

Costs:

Enforcement fees vary by state and method. Garnishee orders typically cost $100–$200. Warrants typically cost $200–$400 plus sheriff fees.

Timeline:

Enforcement can take 4–12 weeks depending on the method and the debtor’s cooperation.

Alternative: Statutory demand for company debtors

If the debtor is a registered company and owes $4,000 or more, you can skip the tribunal and issue a statutory demand under the Corporations Act.

What it does:

Gives the company 21 days to pay or face wind-up proceedings. It’s one of the most powerful debt recovery tools in Australia.

When to use it:

• Debt is $4,000 or more
• Debtor is a Pty Ltd or Ltd company (check ASIC register)
• Debt is not genuinely disputed
• You want maximum pressure without waiting for a tribunal hearing

What it costs:

ClaimDone prepares the statutory demand form and supporting affidavit template for $197. You serve it yourself via registered post or process server.

Risk:

If the company applies to set aside the demand and succeeds, you may be ordered to pay their legal costs. Only use this for clear, undisputed debts.

When to get a lawyer involved

You don’t need a lawyer for most small debt recovery. But consider getting advice if:

• The debt is over $25,000
• The debtor has filed a defence raising complex legal issues
• You’re facing a counterclaim
• The debtor is represented and you feel outmatched
• The matter involves fraud, misleading conduct, or criminal allegations

A 30-minute consult with a commercial lawyer typically costs $300–$500 and can save you from costly mistakes.

How Claim Done helps at each stage

ClaimDone generates the documents you need to escalate properly:

After your first letter is ignored:

Use ClaimDone’s Final Demand service to prepare and send a formal final notice citing the applicable law and warning of tribunal proceedings.

If the final demand is ignored:

Use ClaimDone’s Tribunal Application service to prepare your application, statement of claim, and supporting documents ready for filing.

For company debtors:

Use ClaimDone’s Statutory Demand service to prepare the statutory demand form and affidavit template under the Corporations Act.

All services are flat-fee, no subscription, and delivered in under 60 minutes. You stay in control. You file and serve the documents yourself.

What not to do

Don’t wait indefinitely. Every week you delay, the debtor’s financial position may worsen. Assets get sold, bank accounts emptied, companies deregistered.

Don’t send endless follow-up emails. You’re recovering a debt, not chasing a friend. Two formal demands, then tribunal.

Don’t accept vague promises. “I’ll pay you next month” means nothing without a signed payment plan agreement with consequences for default.

Don’t threaten what you won’t do. If you say you’ll file at tribunal, file at tribunal. Empty threats destroy your credibility.

Final checklist: What to do when your letter is ignored

1. Wait until the deadline expires — not before
2. Send a final demand immediately — 7-day deadline, explicit tribunal warning
3. If ignored again, file at tribunal within 2 weeks — do not delay
4. Prepare your evidence — invoices, contracts, correspondence, proof of service
5. Attend the hearing — be on time, be organised, be calm
6. Enforce the order if you win — don’t assume they’ll comply voluntarily

Debt recovery is a process, not a single letter. Most people give up after the first ignored demand.

Start your final demand today. Claim Done prepares it in under 60 minutes, sends it automatically, and gives you the exact escalation path if they ignore it again.

Frequently Asked Questions

How long should I wait before sending a final demand?

Send your final demand the day after your original letter of demand deadline expires. Waiting longer signals weakness and gives the debtor more time to move assets or ignore you completely.

Can I go straight to tribunal without sending a final demand?

Technically yes in most states, but it weakens your case. Tribunals expect you to make a reasonable attempt to resolve the dispute first. Two formal demands (initial and final) demonstrates you tried. It also shows the debtor had multiple opportunities to pay or respond.

What if the debtor claims they never received my letter of demand?

This is why you send via registered post and email, and keep proof of service. If they claim non-receipt at tribunal, you produce the tracking details and email read receipts. Tribunals rarely accept ‘I didn’t get it’ as a defence when proper service is proven.

How much does it cost to take someone to tribunal?

Filing fees typically range from $50 to $500 depending on your state and claim amount. Most debts under $10,000 cost under $200 to file. Claim Done prepares your tribunal application for $197. You do not need a lawyer for straightforward debt recovery.

What happens if I win at tribunal but they still don't pay?

You enforce the tribunal order using garnishee orders, warrants for seizure and sale, or examination summons. Enforcement fees typically range from $100 to $400 depending on the method. For larger debts, you can escalate to bankruptcy or wind-up proceedings.