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Ask Deborah Awyzio Your Own Question
Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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We have a business client that has failed to pay against a

Customer Question

We have a business client that has failed to pay against a formal debt letter. Under the agreement if they miss 3 consecutive monthly, the entire note becomes due.
My question is if we send you the 1 page debt agreement, can you draft us something that is "official" letting them know the balance is due?
Submitted: 1 year ago.
Category: Australia Law
Expert:  insearchoftheanswer replied 1 year ago.
Hi! My name is ***** ***** I look forward to helping you!
Can you provide me a bit more information? In what state are you located? Also, when you refer to something that is "official," would a template of a demand letter be sufficient?
Customer: replied 1 year ago.
Dear *****,
In our active Debt Letter and Distributor agreements signed February 12th, 2014, we agreed to the following:
1. 365 RMP Group Ply Ltd t/a LeadMaster Australia (LMAU) owes LeadMaster US (LMUS) the sum of $123,964 for past due license fees.
2. LMAU will make monthly payments of $3,500 by the last day of each month through July 31, 2017.
3. Failure to make three (3) consecutive monthly payments between December 2014 and July 2017 will result in the following:
o The entire balance of the note becomes due and payable immediately.
o LMAU customer workgroups will be deactivated.
4. During the period of October 2014 through August 2015 LMAU will be billed for a minimum of 320 licenses at $25 per license or $8,000. Our records indicate you have 361 active licenses for a monthly cost of $9,025 which will be discussed after LMAU comes current with their existing past due payments.
5. Any changes to both the Debt Letter and Distributor agreements can only be made by mutual written consent.
Here’s where we are today.
1. LMAU has missed 3 payments of $3,500 on the outstanding balance of $123,964, equal to $11,500
2. LMAU has not paid for LeadMaster licenses for 3 months at $8,000 per month, equal to $24,000
3. The balance of the outstanding debt as of June 17, 2015 is $109,924 (see attached amortization schedule)
4. The total money LMAU owes LMUS is $133,924 ($109,924 + $24,000). In 2 weeks at the end of June it will be $142,391.
By June 30th, 2015 LMUS must receive a wire for $46,000 representing all of the 2015 missed payments plus the payment due at the end of June (4 payments of $3,500 and 4 payments of $8,000). If payment is not received we will opt to require the entire balance on the note be immediately due and payable. Additionally, LMAU will be subject to the deactivation or suspension of existing LMAU customer workgroups. The deactivation or suspension of existing LMAU customer workgroups does not preclude LMAU’s obligation to repay the amount due, including any interest accrued.
Customer: replied 1 year ago.
i am in Georgia. The customer is in Australia. The Letter Agreement is also under State of GA.
Customer: replied 1 year ago.
This is what I was planning to send - but better to have you weight in...
Customer: replied 1 year ago.
Sorry that was too much information for you. This is the response i as planning to send to him...David,
In our active Debt Letter agreement signed February 12th, 2014, we agreed to the following:
1. 365 RMP Group Ply Ltd t/a LeadMaster Australia (LMAU) owed LeadMaster US (LMUS) the sum of $123,964 for past due license fees.
2. LMAU agreed to make monthly payments of $3,500 by the last day of each month through July 31, 2017.
3. Failure to make three (3) consecutive monthly payments between December 2014 and July 2017 will result in the following:
o The entire balance of the note becomes due and payable immediately.
o LMAU customer workgroups will be deactivated.
4. Any changes to the Debt Letter agreement could only be made by mutual written consent.
LMAU has again missed 3 consecutive monthly payments against the agreed upon time schedule. LeadMaster now demands and serves notice that the entire balance on the note is due immediately. Per our signed agreement, LMAU workgroups are now subject to immediate deactivation. The deactivation of LMAU customer workgroups will not preclude LMAU’s obligation to repay the amount due, including any interest accrued.
Expert:  insearchoftheanswer replied 1 year ago.
Thanks for responding. Because Australia law is involved and I'm not experienced in Australia law, I am going to opt out to open your question up to all experts so another expert can hopefully timely provide you the information you seek. Please do not respond to this post as it will only slow the process of such an expert picking up your question. Take care.
Expert:  Leon replied 1 year ago.
Good Afternoon, My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.By debt agreement do you mean a Part 9 under the bankruptcy Act?
Expert:  Leon replied 1 year ago.
Good Morning
Are you still after assistance?
Customer: replied 1 year ago.
Hello - yes I am requesting assistance on this legal isue. (Just returning from holiday but need to move on this issue. Can you kindly provide your best advice on this issue?In answer to your question, no they are not in bankruptcy. The company is operating their business and receiving payment from their customer for their services. Part of their services includes our software as a service application.There is a debt letter between our 2 organizations. The purpose of the debt agreement was to pay an outstanding balance they owe us for services we performed a few years ago. The agreement states that if they miss 3 monthly payments, we have the option to ask for the entire payment that was due. In addition, we have the right to suspend or inactivate our service. If we do this, their customer will experience a service interruption and will not be able to log into the application.Bot***** *****ne - they continue to provide their customers our software application but are not paying us for the use of our application. I am simply asking for your opinion in terms of next steps. (See below my idea of a formal notification that should go out to them.)David,In our active Debt Letter agreement signed February 12th, 2014, we agreed to the following:
1. 365 RMP Group Ply Ltd t/a LeadMaster Australia (LMAU) owed LeadMaster US (LMUS) the sum of $123,964 for past due license fees.
2. LMAU agreed to make monthly payments of $3,500 by the last day of each month through July 31, 2017.
3. Failure to make three (3) consecutive monthly payments between December 2014 and July 2017 will result in the following:
o The entire balance of the note becomes due and payable immediately.
o LMAU customer workgroups will be deactivated.
4. Any changes to the Debt Letter agreement could only be made by mutual written consent.LMAU has again missed 3 consecutive monthly payments against the agreed upon time schedule. LeadMaster now demands and serves notice that the entire balance on the note is due immediately. Per our signed agreement, LMAU workgroups are now subject to immediate deactivation. The deactivation of LMAU customer workgroups will not preclude LMAU’s obligation to repay the amount due, including any interest accrued.
Expert:  Leon replied 1 year ago.
Good Morning, You send them a letter of demand and refer to the agreement and that they are in breach. If they do not pay you then you can pull the pin on the software or sue them for the money and shut them down. These are your only choices. If the agreement you have with them allows interest you charge them interest. If not then you can only charge interest if you sue them in court at the court rate. I hope this makes sense?