Demand letter, small claims, lawsuit, mediation, arbitration, collections, or doing nothing — which is right for your dispute? I'll show you the costs, timelines, and outcomes for each.
$575
Demand Letter Cost
70%
Settlement Rate
2-4
Weeks to Resolution
$20K+
Saved vs Lawsuit
The Decision You're Facing
Someone owes you money. Breached a contract. Damaged your property. Violated your rights. You know you have a claim — but what's the best way to enforce it?
Most people jump straight to "I'll sue them!" or "I'll take them to small claims court!" without considering whether there's a faster, cheaper, more effective option.
That's where I come in. As a California attorney (Bar #279869), I've helped hundreds of clients navigate this exact decision. Let me walk you through your options.
Sergei Tokmakov, Esq. | California Bar #279869 | Consultations: $240/hr
Frequently Asked Questions
A demand letter is by far the fastest option. I can draft and send it within days, and most recipients respond within 2-4 weeks. Small claims takes 2-4 months from filing to judgment. Lawsuits take 1-3 years. Arbitration takes 3-12 months. Mediation takes 1-3 months to schedule and complete. Collections agencies take 3-6 months. If speed matters, start with a demand letter.
A DIY demand letter is free, but rarely effective. My attorney-drafted demand letter is $575 — far less than any other option except small claims filing fees ($30-$75). However, small claims requires your time, travel, and preparation. A lawsuit costs $20K-$100K+. Mediation costs $2K-$10K. Arbitration costs $15K-$100K+. Collections agencies take 25-50% of whatever they recover. For cost-effectiveness, nothing beats a $575 attorney demand letter with a 70% settlement rate.
If they ignore your demand letter, you have several options: (1) File in small claims court if your claim is under $12,500, (2) File a lawsuit in superior court for larger claims, (3) Initiate arbitration if your contract requires it, (4) Propose mediation, (5) Send to a collections agency if it's a debt. My demand letter service includes a draft complaint, so you're ready to file immediately if needed. The demand letter is never wasted — it becomes evidence that you attempted to resolve the dispute before litigation.
Legally, you CAN skip the demand letter in most cases — but you shouldn't. Many contracts require pre-litigation notice. Many statutes require demand letters before you can file. Even when not required, judges expect to see that you attempted informal resolution. Plus, why spend months in court when a $575 letter might resolve it in weeks? The only time I recommend skipping the demand letter is when (1) you need an emergency restraining order, (2) the statute of limitations is about to expire, or (3) you're dealing with someone who's actively hiding assets.
Start with these questions: (1) How much is at stake? Under $12,500 → small claims. Over $12,500 → superior court or arbitration. (2) Does your contract require arbitration? If yes → you need arbitration (but send a demand letter first). (3) Is this a debt collection matter? If yes → consider demand letter vs collections agency. (4) Do you want to preserve the relationship? If yes → consider demand letter + mediation. (5) How quickly do you need resolution? Fast → demand letter. No rush → lawsuit. For 90% of cases, the answer is: Start with a demand letter and escalate if needed.
Legal Disclaimer: I'm Sergei Tokmakov, a California attorney (Bar #279869). This comparison is educational information based on my experience, not legal advice for your specific situation. The success rates, timelines, and costs mentioned are approximations based on typical cases. Your results may vary. Consult with an attorney about your specific case.