Reclamation Letters: How to Demand Your Goods Back
When a customer receives your goods and then cannot pay, a reclamation letter may let you demand those goods back, but only if you move fast and do it correctly. Here is what a reclamation letter is, the tight deadline that governs it, and what to include.
What's inside
What a reclamation letter is
A reclamation letter is a formal, written demand for the return of goods you delivered to a customer who has not paid for them, usually a customer who is insolvent or has just filed bankruptcy. It is a specific legal remedy, not a strongly worded collection notice. Used correctly and in time, it can let you recover the actual goods instead of standing in line as one more unsecured creditor hoping for cents on the dollar.
The deadline that makes or breaks it
Reclamation lives and dies on timing. The right to reclaim goods applies only to recent deliveries and must be asserted within a short window, and that window is often measured against when the customer received the goods and when they became insolvent or filed. Miss it and the right is simply gone. This is why a reclamation demand is an emergency, not a task for next week. The moment you learn an insolvent customer is holding goods you have not been paid for, that is the day to act and to get legal advice on the exact deadline that applies to your situation.
What to include in a reclamation letter
A reclamation demand needs to be clear, specific, and provable. At a minimum it should identify the exact goods you are reclaiming, reference the invoices and delivery dates, state plainly that you demand their return because they have not been paid for, and be sent in a way that creates a dated record of delivery. Vagueness is fatal here. You are asserting a right to specific property, so name the property.
Date: [date]
To: [Customer legal name and address]
Re: Demand for reclamation of goods, invoice(s) [numbers]
"We delivered the goods described on the referenced invoice(s) on [delivery date(s)]. Those goods have not been paid for. Under our rights as an unpaid seller, we hereby demand the immediate return of the following goods: [specific description and quantities]. Please preserve these goods and contact [name] at [phone] immediately to arrange their return."
[Signature, title, company, and send via a method that documents delivery.]
Treat this skeleton as a starting point to review with counsel, not a form to fire off blind. The specifics matter too much to guess.
Reclamation versus collection
Reclamation is about getting your goods back. Collection is about getting your money. They are not the same tool, and one does not replace the other. If reclamation is not available or the goods are gone, you are back to pursuing the debt as a creditor, through the bankruptcy process if the customer has filed, or through collection and legal remedies if they have not. Knowing which tool fits the moment, and how little time you have to use the sharpest one, is the whole game.
When goods are gone and the debt remains
If reclamation is not on the table, recovering the money is. Our team pursues commercial debt through collection, bankruptcy claims, and legal forwarding when a customer will not pay.
Frequently asked questions
What is a reclamation letter?
A formal written demand for the return of goods you delivered to a customer who has not paid, typically one who is insolvent or has filed bankruptcy. It is a specific legal remedy for an unpaid seller, distinct from an ordinary collection notice, and it can let you recover the actual goods rather than only a share of the estate.
How long do I have to send a reclamation demand?
Not long. Reclamation applies only to recent deliveries and must be asserted within a short window tied to when the goods were received and when the customer became insolvent or filed. The exact deadline depends on your facts and the law that applies, so treat it as an emergency and get legal advice the day you learn of the situation.
What should a reclamation letter include?
The exact goods being reclaimed, the referencing invoices and delivery dates, a clear statement that you demand their return because they were not paid for, and delivery by a method that creates a dated record. Because you are asserting a right to specific property, describe that property precisely.