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It doesn't necessarily mean her Trust Deed will be terminated, though that could possibly be the outcome.ย More likely the Trustee will reassess what your partner should have been paying and insist that the difference be made good at some point (probably by extending the Trust Deed term).ย Obviously her ongoing payments would also jump up.
Maybe she can make a case that there were other outgoings that hadn't been taken into consideration initially too?ย If so, that might limit the amounts due going forward.
Most grateful to you Kevin...