Client Not Paying After Delivery: Demand Letter, Small Claims or Write Off

At FreelanceAtlas, we help freelancers get paid for work they have already delivered. This guide compares each step from a reminder to small claims, with limits, fees and rules taken from court pages, the New York and Illinois labor departments, the New York City consumer agency, the FTC and the IRS in November 2026. For the full collection process, read How to Collect Unpaid Invoices as a Freelancer Without a Lawyer, and for a longer letter, How to Write a Demand Letter for an Unpaid Invoice (Template Included).

This guide is general information, not legal or tax advice. Small claims limits, fees and rules differ by state and sometimes by county, so confirm them with the court where you plan to file, and talk to a lawyer before you take down work a client already uses.

Client Not Paying After Delivery: The Answer at a Glance

The table compares the options for an invoice that is still open after you delivered the work. Costs come from court, agency and IRS pages as of November 2026, and Texas service fees differ by county.

Reminder or Demand Letter: Will It Make Things Worse?

A client who has ignored two weeks of emails has already stopped paying, so a calm demand letter has little left to make worse. The letters that backfire are the ones that threaten a step you will never take, or that are written in anger and can be forwarded to others.

Use this order. When the invoice falls due, check that it reached the person who pays bills, since a small business client may route invoices to an assistant or a bookkeeper. If nothing arrives, send one reminder with a firm date about 7 days out. If that date passes, send the demand letter by email and by tracked mail, and give 10 days. California’s self-help guide on asking for the money says this request is a step you must take before filing, and that you can ask in person, by letter or by email, stating the amount and why it is owed.

Reminder Message With a Pay-By Date

Subject: Invoice 1047 for $2,400, now past due
Hi Dana,
The final files for the brand kit were delivered on October 6, and you approved them by email the same day.
Invoice 1047 for $2,400 was due on October 21 and is still open.
Please pay by October 30 using the link on the invoice.
If something is holding up payment, reply with the date you can pay and I will note it.
Thank you,
Sam

Short Demand Letter

[Your name, business name and address]
November 1, 2026
To: [Client’s legal business name], attention Dana, [client’s business address]
Re: Demand for payment of invoice 1047
On September 15 you agreed by email to pay $2,400 for a brand kit, due 15 days after delivery.
I delivered the final files on October 6, and you approved them by email that day.
No payment has been received, and my emails of October 22 and October 30 have had no reply.
Please pay $2,400 by November 11, 2026.
If payment is not received by that date, I will file a claim in San Diego County small claims court.
Copies of the agreement email, the approval email and the invoice are attached.
Sam

The names, dates and amounts above are for example only. If your contract sets a late fee, add it on its own line and quote the clause, as shown in How to Charge Late Fees on Freelance Invoices. Keep a copy of what you sent and the tracking record.

Small Claims Limits and Fees in California, New York City and Texas

Small claims courts hear money claims up to a set limit, and in California you cannot have a lawyer represent you at the hearing. The rules below come from court pages and, for the New York limits, the state Department of Labor, as of November 2026.

• California. The state’s small claims self-help page sets the limit at $12,500, or $6,250 if you sue as a business, and says you cannot have a lawyer represent you in court. The Butte County Superior Court’s small claims page lists the filing fees: $30 for claims of $1,500 or less, $50 from $1,500.01 to $5,000, and $75 from $5,000.01 to $12,500, or $100 if you filed more than 12 claims in California in the past 12 months. The same page says a sole proprietor counts as an individual, so the $6,250 business limit does not apply, and that only two claims per calendar year may be over $2,500. For a broken agreement, the state’s guide on where to file lets you file in the county where the agreement was made, was broken or was to be carried out, or where the client lived or worked when you made it.
• New York City. The New York State Department of Labor’s small claims page says you may sue for up to $10,000 in New York City and pay a filing fee of at most $20, depending on the amount of the claim. The city court’s small claims filing page sets the fee at $15 for claims up to $1,000 and $20 for claims over $1,000. Outside the city, the limit is $5,000 in City Courts and $3,000 in Town or Village Courts.
• Texas. Small claims cases go to justice of the peace courts, and the figures here are Tarrant County’s. Its Justice Court 6 page allows claims of up to $20,000, not counting statutory interest and court costs but counting any attorney fees. Filing costs $54, and a constable charges $90 for each person served in Tarrant County. If the client is in another county, you pay that county’s service agency separately.

Winning is not the same as being paid. California’s page on collecting after you win says the court does not collect the money for you, and you must wait at least 30 days after the Notice of Entry of Judgment before you start. Your tools include a debtor’s examination, where the client answers questions about income and assets, and form SC-133, a statement of assets the client must send you.

Under $500 and Ghosted: Is Small Claims Worth It?

In California and New York City, usually yes, because the filing fee for a claim this size is $30 or $15, while in Tarrant County, Texas, filing and constable service cost $144, which is a large share of a small claim.

For example, on a $450 invoice:

• California. The $30 fee is 6.7 percent of the claim.
• New York City. The $15 fee is 3.3 percent.
• Tarrant County. The $54 fee plus $90 for service is $144, or 32 percent.

The bigger cost is your time: filing, serving the client and a hearing day. In California, the self-help page adds that if you started the case and lose, you cannot appeal. Before you file over a small amount, offer a split, such as half now and half in 30 days, in a second demand that names the court and the date you will file.

If the client cannot be found, writing it off may be the only choice, and it brings no tax break. The IRS page on the bad debt deduction says a cash method taxpayer, which describes most individuals, generally cannot deduct unpaid fees, since a business bad debt must first have been included in income.

No Signed Contract, Only Emails and Texts: Can You Win?

You can sue on an agreement that was never signed. California’s before you start page gives a deadline of 2 years from the date it was broken for an unwritten (verbal) agreement and 4 years for a written one, so both kinds can go to court. The Santa Cruz Superior Court Self Help Center’s guide to preparing for a small claims trial lists emails and texts as evidence, next to contracts and receipts.

That guide says you must prove your case by a preponderance of the evidence, which it explains as more likely than not. For an unpaid invoice, that means showing three things: what the client agreed to pay, that you did the work, and that the money never arrived. Gather these before you file:

• The messages where the price and the work were agreed, even if they were casual.
• Delivery records: the email with the files, a download log or a shared folder history.
• The client’s approval, such as “Looks great, thanks.”
• Your invoice and every reminder, with dates.
• Any Form 1099 you received from the client for earlier work, which shows an ongoing paid relationship.

Bring 3 copies of everything: one for you, one for the judge and one for the client. The Santa Cruz guide also notes that if the client does not show up, you do not win automatically and still have to prove your case. An invoice from last summer is still inside California’s 2-year window for unwritten agreements. If the client is a public body, check the special rules first: California’s page on suing a government agency says you must submit a claim to the agency before suing, within 1 year for a contract claim, and the agency has 45 days to respond.

New York and Illinois Freelancer Laws

Three freelancer laws add a complaint route outside small claims:

• New York City. The city’s “Freelance Isn’t Free” Act page requires a written contract for work worth $800 or more, including work that adds up to $800 within 120 days. The contract must state the work, the pay and the date you get paid. With no date, the client must pay within 30 days after you complete the work. If you are not paid on time, the page says you have a right to collect double the amount you were not paid, plus attorneys’ fees and costs. Complaints are filed online with the Department of Consumer and Worker Protection, questions go to freelancer@dcwp.nyc.gov or 311 (212-NEW-YORK from outside the city), and the page says you have rights regardless of immigration status.
• New York State. The state Department of Labor’s “Freelance Isn’t Free” Act page says the law added Article 44-A to the General Business Law on August 28, 2024. Freelancers file complaints with the New York State Attorney General, and the department offers a model contract.
• Illinois. The Illinois Department of Labor’s freelance page covers contractors who provide products or services in Illinois or who work for a hiring entity located in Illinois, for work worth $500 or more in 120 days, under contracts taking effect after July 1, 2024. Payment is due by the due date in the contract or, with no date, within 30 days of completing the services. Complaints go through the department’s online form, and its contact line is 312-793-1819 or dol.freelance@illinois.gov.

Outside the US With a US Client Who Will Not Give a Date

Work from the client’s side of the border: a written demand by email, then the client’s state freelancer law or small claims court in the client’s county, and a US collection agency if those fail.

On a net-30 invoice the due date is already set, so the client is late on day 31 whether or not it gives a date. Email the demand letter, then check where the client is:

• Illinois clients. The Illinois law’s wording covers contractors who work for a hiring entity located in Illinois, and the department takes complaints through an online form.
• New York City clients. The city takes complaints online, and lists 212-NEW-YORK for callers outside the city.
• California clients. Small claims is filed in the client’s county under the venue rules above. Some courts take video appearances: the San Francisco Superior Court’s small claims page asks for the Zoom request forms at least 10 calendar days before the hearing. Ask the clerk in the client’s county whether you can file and appear from abroad before you pay a fee.
• Clients anywhere else. A US collection agency can contact the client locally. The FTC’s debt collection FAQs note that business debts are not covered by the Fair Debt Collection Practices Act, so ask any agency how it contacts debtors and what share it keeps before you sign.

For future work with US clients, take a deposit and tie delivery to payment, as covered in Freelance Payment Terms That Actually Get You Paid.

Client Wants $1,500 Off Before You Hand Over the Work

If the price is in a quote the client signed and you still hold the work, you are in the stronger position: keep the files until the agreed amount is paid, offer a payment plan instead of a discount, and accept less only in writing and only if the money now is worth more to you than the dispute.

For example, on a signed quote of $4,850, a $1,500 discount leaves $3,350. If you hold firm and the client still refuses, a California small claims case for $4,850 costs $50 to file, and the claim fits under New York City’s $10,000 limit and Texas’s $20,000 limit. California’s deadline to sue on a written agreement is 4 years from when it was broken. A reply that keeps talks going:

Hi Morgan,
The signed quote from August 4 sets the price at $4,850, and the work is complete.
I cannot reduce the price, but I can split it: $2,425 now and $2,425 in 30 days.
I will send the final files as soon as the first payment clears.
If you see a problem with the work itself, list it and I will review it against the quote.
Best,
Sam

If you do accept less, write the new amount, the payment dates and the words “paid in full on receipt of $X” in an email both of you confirm, so the balance is not reopened later.

A Signed Website Contract, No Payment and No Reply

If the client never received access, keep the site on your own server or staging account until the agreed payment arrives, as long as your contract ties launch or handover to payment. Ownership of the code and design depends on your contract. The US Copyright Office’s Circular 30 on works made for hire says a commissioned work is a work made for hire only if it falls in one of nine listed categories and both sides signed a written agreement saying so. Outside those cases, the person who created the work is ordinarily its author. Do not disable a site the client already runs, or change its passwords, without advice from a lawyer, and file in small claims or under a freelancer law instead.

Which One Fits Your Situation

• If the invoice is less than 2 weeks late and the client has paid before, then send the reminder with a pay-by date and ask who handles payments.
• If the reminder date passed with no reply, then send the demand letter with a 10-day deadline.
• If the client is in California and owes $12,500 or less, then file in small claims in the right county after your written demand.
• If the client is in New York City and owes up to $10,000, then file in small claims, and also file a “Freelance Isn’t Free” Act complaint if the work was worth $800 or more.
• If the client is located in Illinois and the work was worth $500 or more, then file a complaint with the Illinois Department of Labor, since the law covers contractors who work for a hiring entity located there.
• If the client offers a lower amount, then counter with a payment plan and hold the files until the first payment clears.
• If the amount is under $100 and the client cannot be found, then writing it off may cost less than chasing it, with no tax deduction on the cash method.
• If the client paid by card and later filed a dispute, then follow the steps in Chargebacks for Freelancers.

Worked Example: A $2,400 Brand Kit Gone Silent

For example, a freelance designer in Sacramento agrees by email to make a brand kit for a small business in San Diego County for $2,400, due 15 days after delivery. There is no signed contract. The client approves the files on October 6 and then stops replying.

• October 21. The invoice falls due. Nothing arrives.
• October 22. The designer sends the reminder with a pay-by date of October 30.
• November 1. The designer emails and mails the demand letter with a deadline of November 11. This is the request for payment California requires before filing.
• November 12. The designer files in San Diego County, where the client does business. A $2,400 claim falls in the $1,500.01 to $5,000 band, so the filing fee is $50.

Here is what each outcome is worth before tax:

• The client pays after the demand. The designer receives $2,400 and spends $0 on court.
• The client offers $1,800 to settle. That is $600 less than the invoice.
• The designer wins and collects in full. California’s small claims comparison page says the court can order the losing side to pay your court fees and costs. With the $50 fee repaid, the designer nets $2,400; without it, $2,350, which is $550 more than the settlement. Collection starts only 30 days after the judgment notice and may take longer.
• The designer writes it off. The designer receives $0, and as a cash-method taxpayer gets no bad debt deduction.

The $550 to $600 gap between settling and winning is the price of the extra wait and the hearing. A designer who needs cash now may take the $1,800 in writing, and one who can wait may file.

Traps That Cost Freelancers Their Money

• Sending final files before the final payment. Once a client has the files, nothing in the project depends on paying you. Send watermarked or low-resolution proofs for approval and release the final files on payment.
• Starting with no deposit. A web designer who agrees to “pay when finished” carries all the risk. Ask for part of the fee up front.
• Doing more changes while the invoice is unpaid. Each new request moves the payment date.
• Threatening a step you will not take. If you say you will file on a date, file on that date.
• Waiting too long. In California, an unwritten agreement has a 2-year deadline, and a claim against a government agency starts with a 1-year deadline to submit a claim to that agency.
• Using the wrong name or county. California’s guide says you need a business client’s official business name, and that a case filed in the wrong county may be dismissed.
• Expecting a tax write-off. On the cash method, unpaid fees are not deductible. Bill clearly from the start with our invoice generator and set payment terms in writing with the contract generator.

Conclusion

When a client goes silent after approving your work, send one reminder with a date, then a factual demand letter with a 10-day deadline. California requires that request before small claims. As of November 2026, filing costs $30 to $75 in California, $15 or $20 in New York City and $54 plus service in Tarrant County, Texas.

A missing contract does not end your case, because emails and texts count as evidence. If the work is tied to New York City, New York State or Illinois, a freelancer law complaint can run alongside small claims. Write the debt off last, since a cash-basis freelancer gets no deduction for fees never paid.

Key Takeaways

• Send a reminder with a pay-by date first, then a demand letter with a 10-day deadline. California requires asking for the money before you file.
• As of November 2026, California small claims covers up to $12,500 ($6,250 for a business, but sole proprietors count as individuals) for a $30 to $75 filing fee.
• New York City small claims covers up to $10,000 for a fee of $15 or $20, and Tarrant County, Texas covers up to $20,000 for $54 plus $90 per constable service.
• Emails and texts are evidence, and California allows 2 years to sue on an unwritten agreement and 4 years on a written one.
• New York City’s “Freelance Isn’t Free” Act gives a right to double the unpaid amount, and Illinois’s law covers contractors who work for a hiring entity located in Illinois.
• Writing off an unpaid invoice brings no bad debt deduction for a cash-method freelancer, per the IRS.

Frequently Asked Questions

My client approved the work and got the final files, then stopped answering. Should I send a demand letter or will that make it worse?

Send it after one reminder with a firm date has passed. A factual letter with the amount, a 10-day deadline and the court you will file in is the normal next step with a client who has already stopped paying. In California, asking for the money is a required step before small claims, and a letter or email counts.

A client owes me under $500 and is ghosting me. Is small claims worth it?

In California and New York City it often is, because filing a $450 claim costs $30 or $15 as of November 2026. In Tarrant County, Texas, filing plus constable service is $144, which is 32 percent of a $450 claim. Try a split payment offer and a second demand naming the court first.

I never had a contract, only emails and texts. Is that enough to win in small claims?

It can be. California’s court guide sets a 2-year deadline for unwritten agreements, and the Santa Cruz court lists emails and texts as evidence. Bring the messages showing the price, the delivery and the approval, plus your invoice, in 3 copies.

I live outside the US and my US client will not pay my net-30 invoice. What can I do from abroad?

Email a demand letter, then use the client’s state: Illinois’s freelancer law covers contractors who work for a hiring entity located in Illinois, and New York City takes complaints online. For small claims, ask the clerk in the client’s county whether you can file and appear by video, as San Francisco allows with forms filed 10 calendar days ahead.

Can I write off an unpaid client invoice on my taxes?

Usually not if you use the cash method, which most individuals do. The IRS says cash method taxpayers generally cannot take a bad debt deduction for unpaid fees. A business bad debt must first have been included in your income, and on the cash method an unpaid invoice never was.