What Happens If You Ignore a Letter of Demand in Nigeria?

If you have received a Letter of Demand in Nigeria and are wondering whether you can simply ignore it — the short answer is: you can, but it will cost you significantly more in the end.

This article explains what happens next from the creditor's perspective — so whether you are the one owed money or the one receiving the letter, you understand the legal process.

What Happens at the End of the Deadline?

A Letter of Demand typically gives the debtor 7 to 14 days to pay or respond. When that deadline passes with no response, the creditor has several options.

Option 1: File at the Small Claims Court

For debts up to ₦5,000,000 in Lagos (limits vary by state), the creditor can immediately file at the Small Claims Court. The court will issue a Summons on the debtor — a formal court document requiring them to appear. Ignoring a court summons is far more serious than ignoring a letter.

In an uncontested claim (where the debtor does not show up or does not dispute the debt), the creditor can obtain a default judgment — a court order stating the debtor must pay. This typically happens within 30 days of filing.

Option 2: File in the Magistrates' or High Court

For larger debts, the creditor can file in the Magistrates' Court (above SCC limits) or the High Court. These courts have greater enforcement powers and the proceedings are more formal.

What Can the Creditor Do With a Court Judgment?

Once a judgment is obtained, the creditor can enforce it in several ways:

• Garnishee Order — A court order that attaches money directly from the debtor's bank account
• Writ of Execution — A sheriff seizes and sells the debtor's assets to satisfy the judgment
• Attachment of Earnings — The debtor's employer is ordered to deduct money from their salary
• Oral Examination — The debtor is summoned to court and must disclose all their assets under oath

Does Ignoring the Letter Make It Worse?

Yes — in two important ways:

1. Cost escalation: Court costs, filing fees, and legal costs are added on top of the original debt. If the creditor wins (which they usually do in clear debt cases), they can ask the court to make the debtor pay these costs too.
2. Loss of negotiating power: Before filing, the creditor may be open to a payment plan or partial settlement. Once a court judgment is obtained, the full amount plus costs is owed — no negotiation.

If You Dispute the Debt

If you receive a Letter of Demand and you genuinely dispute the debt — wrong amount, already paid, goods never delivered — you should respond in writing within the deadline, clearly stating your position. Silence is treated as acceptance. A written response creates a record and may avoid court entirely.

If You Are the Creditor

If your Letter of Demand has been ignored, Pandas LP can file the court claim on your behalf. Our Small Claims AI Agent pre-loads all the information from your original case — so you don't need to repeat yourself.