How to Write a Demand for Payment

A demand for payment (wezwanie do zapłaty) is an official letter sent to a debtor who does not pay its debts on time. It is an example of soft debt collection, used before a case is brought in court.

What Should a Demand for Payment Contain?

A demand for payment is a letter that should contain:

• the details of your business or company,
• the debtor's details (business name, address),
• the amount to be paid,
• the payment due date,
• information on the source of the arrears (refer to the invoice or contract),
• a time limit for payment,
• information that the demand is an attempt to resolve the matter amicably,
• the signature of the person demanding payment.

Can a Demand for Payment Be Sent by Email?

Yes, a demand can be sent by email. Clients often think that a demand for payment sent by email will have no legal force. This is not true: a demand sent by email will also be valid, but for evidential purposes you should remember to use the delivery confirmation option for the email message.

See also: Legal services for companies

A demand for payment signed by an attorney-at-law (radca prawny) with a qualified electronic signature (this is not a trusted signature) has the same force as a letter signed by hand.

Does a Demand for Payment Interrupt the Limitation Period?

No, a demand for payment alone does not interrupt the limitation period. Clients are often convinced that merely sending a demand for payment interrupts the limitation period and that it will be possible to bring a case in court. Unfortunately, this is not enough to extend the limitation period.

The limitation period is interrupted, for example, by:

1. filing a statement of claim in court,
2. filing an application to initiate enforcement proceedings,
3. acknowledgement of the claim by the debtor (for example, by concluding a settlement).

How Many Demands for Payment Must Be Sent Before Bringing a Case in Court?

Court proceedings are highly formalised. One of the requirements for a statement of claim is that it must state whether the parties have attempted mediation or another out-of-court method of resolving the dispute and, if no such attempts were made, explain why.

See also: Debt collection (in Polish)

This sounds complicated, but it most often means stating in the statement of claim whether the party has sent a demand for payment. Sending one demand for payment is sufficient, but it is important to have confirmation that the demand was delivered to the debtor. Such confirmation may be:

• proof of posting,
• proof of receipt of the letter,
• confirmation of delivery (and reading) of the message, if the demand was sent by email.

Can an Entrepreneur Be Penalised for Not Sending a Demand for Payment?

Yes, in certain cases an entrepreneur may be penalised for not sending a demand for payment. Where an entrepreneur is in dispute with a consumer, sending such a demand becomes mandatory, because failure to do so may result in the entrepreneur bearing the costs of the proceedings even if the entrepreneur wins the case. In such a situation the costs of the proceedings may also be increased (up to twofold), which is why it is so important to send the consumer a proper demand for payment of the arrears.

See also: Bankruptcy law firm (in Polish)

I Have Sent a Court Demand for Payment. What Next?

After a demand for payment is sent, the debtor may respond to it, for example by asking for an extension of the payment deadline or for payment in instalments. It may happen, however, that the debtor does not respond at all. In that case the only step that will interrupt the limitation period is filing a statement of claim. It is important here to check when the counterparty's debt becomes time-barred. As a rule, the period is 3 years, but for some debts it may be shorter, for example 6 months.

Has a counterparty failed to pay an invoice on time, and do you need help writing a demand for payment or a statement of claim for payment? Our law firm of attorneys-at-law specialises in business law (in Polish). Our services include, among others, legal services for businesses, which also cover debt collection. Please contact us.