When to send a demand letter?

Technically, the demand letter has no legal impact. It simply represents an offer to resolve a dispute via an out-of-court settlement under the threat of litigation. In your case, it appears from your description that your former business partner has demanded that you pay the disputed amount by a certain date or else s/he will commence a lawsuit against you. It is, of course, possible that even if you do not pay the amount demanded, your former business partner would decide not to pursue the lawsuit--in other words, it could be a bluff. However, if you call the bluff and ignore the letter, and your former business partner sues you, it could become a much more expensive problem for you. I would therefore strongly recommend that you retain an attorney to advise you and respond to the letter.

Hello - so sorry that you received this. First off, be aware that there is zero requirement that you reply to a demand letter; sometimes, strategically, it's better not to, because anything you say could be used against you should the employer escalate the matter. Second, in many demand letters, a lawsuit is threatened, but many people make threats and never follow through with a lawsuit. Third, if the letter is from the employer, rather than from an attorney, it's less likely to be factually and legall accurate than if it came from an attorney. Finally, if you are concerned, it'd be a good idea to have the letter AND your contract AND any other pertinent information reviewed by an employment attorney. I'd be happy to help you with this if you'd like to request me, and I can almost always provide a quick turnaround.

It is always an excellent idea to (1) Use a polite and professional tone, along the lines of how you would write if your letter could end up in front of a judge some day; (2) Have a friend or family member review your letter with you before you send it; and (3) include all your pertinent contact information. However, I do want to mention that when you write back, if you don't know what the debt is for, you are within your rights to request written verification of what the debt is for - I mention this because there is a popular scam of sending fake debt collection letters to people and causing them all kinds of stress and distress.

Unfortunately, often, one can cite all the laws one wants, but the person who owes the debt may simply be unwilling or unable to pay. If the debt is for less than $10,000, consider filing in Small Claims Court in your county. Here is the statewide information: https://www.courts.wa.gov/newsinfo/resources/?altMenu=smal&fa=newsinfo_jury.scc In addition, many counties, such as King, have their own websites and lots of information. When you file in Small Claims Court, be sure to include copies of all relevent paperwork, including any letters you sent to the defendent. And request reimbursement for the debt, interest, the cost of filing the Small Claims case, and any related costs/expenses. Even if you win, however, you may not get paid - but if you win, you will have some other ways to collect, such as garnishing wages or a bank account. I'd be happy to help coach you through the Small Claims process if you'd like to request my help through ContractsCounsel.com

You can always write a letter and ask politely and professionally, and send the letter certified, return receipt, and keep copies of everything. If you pay an attorney to do this for you, it could cost $1000 or more. Or, for free, you can file a wage complaint for free with the state, here: https://secure.lni.wa.gov/wagecomplaint/#/ You are protected from retaliation from doing so (at least, in theory - there are ways that employer can subtly retaliate).