The contractor took your $3,200 deposit in June, showed up twice, tore out half the bathroom tile, and stopped answering. It’s November. You’ve texted, called, and left a review. Nothing. You’re ready to go to small claims court, and you’ve heard you should send a letter first.
You heard right. A letter of intent to sue (sometimes called a final demand letter) tells the other side exactly what you want, by when, and what you’ll do if you don’t get it. Many disputes end right here, because the other person suddenly realizes this is real. And if they don’t pay, the letter becomes evidence that you tried. Here’s how to write one.
Quick note: This guide is general information, not legal advice. Small claims limits, filing rules, and pre-suit notice requirements vary by state. Some claims, like certain claims against government agencies, have special notice rules and short deadlines.
Why Send One at All?
- It often works. Going to court costs the other side time too.
- Some courts expect it. Certain states or types of claims require a written demand before you file, and judges like to see that you tried to settle.
- It organizes your case. Writing it out forces you to pin down the facts, the amount, and your evidence.
What to Include
- The facts, briefly and in order. Dates, what was agreed, what went wrong.
- The exact amount you want and how you got that number.
- A clear deadline, usually 10 to 14 days.
- What happens next: you’ll file in [county] small claims court.
- How to pay or respond.
Keep it calm and factual. A judge may read it. Avoid insults, and don’t threaten anything other than legal action you actually plan to take. Threatening to report someone to the police to get money can backfire.
Check the Small Claims Limit
Each state caps how much you can sue for in small claims court. Limits commonly fall somewhere between $5,000 and $15,000, and some states go higher for individuals. Look up your state’s limit before you name an amount.
A Worked Example
Nina paid a contractor a $3,200 deposit under a written estimate for a $7,800 bathroom remodel. The contractor demolished the old tile on two visits, then disappeared. Nina hired someone else to finish the demo and haul away debris for $650.
She sends Template 1, asking for $3,200 minus the reasonable value of the work done ($400, based on her new contractor’s estimate), plus the $650 she paid to clean up: $3,450 total, within 14 days. Ten days later, the contractor calls and offers $2,800. Nina accepts in writing to avoid court. If he hadn’t responded, she had everything she needed to file.
Template 1: Unfinished Work or Services
[Your Full Name]
[Address]
[Phone] | [Email][Date]
[Their Name / Business Name]
[Address]Re: Final demand before filing in small claims court
Dear [Name],
On [date], we agreed that you would [describe work] for $[total], and I paid a deposit of $[amount]. A copy of the estimate and my payment record are enclosed.
You performed work on [dates] and have not returned since [date], despite my messages on [dates]. I have since paid $[amount] to [another contractor] to [finish/clean up].
I am asking you to pay $[amount] by [date, 10 to 14 days away]. This is [the deposit, less the value of work completed, plus my added costs].
If I do not receive payment or hear from you by that date, I intend to file a claim in [county] small claims court for the full amount, plus court costs.
You can reach me at [phone] or [email].
Sincerely,
[Name]
Enclosures: [list]
Template 2: Unpaid Personal Loan
Re: Repayment of loan, final notice before legal action
Dear [Name],
On [date], I loaned you $[amount], which you agreed to repay by [date]. [Copies of our messages / the written agreement / the bank transfer] are enclosed.
As of today, you have repaid $[amount], leaving a balance of $[amount].
Please pay the balance by [date], or contact me by then to agree on a written payment plan. If I don’t hear from you, I will file a claim in [county] small claims court.
I’d prefer to settle this between us.
Sincerely,
[Name]
Template 3: Property Damage
Re: Demand for payment for damage to my property
Dear [Name],
On [date], [describe event, e.g., your tree fell onto my fence during a storm after I notified you in writing on (date) that it was dead and leaning]. The repair cost is $[amount], according to the enclosed estimate and invoice.
Please pay $[amount] by [date]. If you have homeowners insurance, please forward this letter to your insurer and send me the claim information.
If I don’t receive payment or a response by that date, I intend to file in [county] small claims court.
Sincerely,
[Name]
How to Send It
- Certified mail, return receipt requested. Proof they got it.
- Also send by email or text if that’s how you’ve been communicating.
- Keep copies and bring them to court.
If They Don’t Pay
Go to your county court’s website and look for the small claims section. You’ll usually fill out a short form, pay a filing fee, and have the other side officially served. Bring your letter, the receipt, and all your evidence to the hearing. If you win and they still don’t pay, the court can explain collection options like wage garnishment or bank levies.
Frequently Asked Questions
Do I need a lawyer to send this?
No. People write these themselves all the time. A letter on attorney letterhead may carry more weight, but for small claims amounts it’s often not worth the cost.
Can I add extra money for stress or my time?
Small claims courts generally award actual losses, not compensation for frustration. Stick to amounts you can prove.
How long do I have to sue?
Every state has a statute of limitations, often a few years for contract claims. Don’t wait too long.
Related Guides
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Last reviewed: November 5, 2026 by the PerfectWordNow Editorial Team.
Disclaimer: This article is for general information only and is not legal advice. For help with your situation, contact a legal aid office or a licensed attorney.