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The Letter of Demand Small Claims Court document is a crucial tool in New Zealand's debt recovery process, specifically designed for use before approaching the Disputes Tribunal (New Zealand's small claims court). It represents a final formal attempt to resolve a payment dispute before initiating legal proceedings. This document is essential when previous informal attempts to collect payment have failed, and the debt amount falls within the Disputes Tribunal's jurisdiction (up to NZD 30,000). The letter serves multiple purposes: it formally documents the debt claim, demonstrates the creditor's reasonable attempts at collection, provides the debtor a final opportunity to pay before legal action, and can be used as evidence in subsequent Tribunal proceedings. It's particularly important in New Zealand's legal framework as the Disputes Tribunal generally requires parties to have made reasonable attempts to resolve their dispute before filing a claim.

1. Sender's Details: Full name, address, and contact information of the person or entity making the claim

2. Recipient's Details: Full name, address, and contact information of the person or entity owing the debt

3. Date: Current date of the letter

4. Reference Line: Clear subject line identifying the matter as a formal demand for payment

5. Debt Details: Specific amount owed, including a breakdown if multiple items/services are involved

6. Background of Debt: Clear explanation of how the debt arose, including relevant dates and transactions

7. Previous Communication: Reference to any previous attempts to resolve the matter

8. Demand Statement: Clear statement of the amount demanded and deadline for payment

9. Legal Requirements: Statement indicating this is a final demand before Disputes Tribunal proceedings

10. Payment Instructions: Clear instructions on how and where to make the payment