Brittany Higgins likely to be declared bankrupt after losing defamation case against ex-boss Linda Reynolds

Brittany Higgins will likely be declared bankrupt in the Federal Court on Tuesday, after being forced to pay former senator Linda Reynolds over $1 million following defamation action.

Reynolds filed a creditors petition against Higgins according to a report in The Australian, which will ask Judge Craig Colvin for a sequestration order that allows a trustee to control Higgins’ financial affairs.

The order would make Higgins financials more transparent, including the monies she received from her $2.4 million compensation payout by the Commonwealth in 2022.

Higgins is not expected to be in the Perth court, according to the report.

This leaves the option open for Justice Colvin to defer a decision. However, if the petition is accepted, the court would appoint a trustee in bankruptcy, who would take control of Higgins’ finances.

Reynolds will be the creditor of the estate.

The trustee in bankruptcy will then require all available information on Higgins financial affairs, including access to her “protective trust” that would hold her compensation payout.

Higgins’ husband David Sharaz will face a similar hearing on December 16.

The case follows the verdict by the WA Supreme Court in August, when Judge Paul Tottle found Higgins did indeed defame her former boss on three occasions.

She successfully defended herself on only one of those occasions at trial a year ago, Justice Tottle ruled, awarding the ex-Liberal Senator $315,000 in damages plus $26,109 in interest for the other two slurs.

Justice Tottle went on to make a costs order, which found Higgins liable for 80 per cent of Reynolds’ legal costs.

That is estimated to be at around $1.5 million.

Reynolds, who did not recontest the May federal election, sued her former junior media adviser over a series of social media posts in 2022 and 2023.

In them, Higgins referred to being “bullied” and refusing to “stay silent”, alleging her then-boss mishandled her claim she was raped by colleague Bruce Lehrmann at Parliament House in 2019.

“This lie was so shocking, it was so despicable and so devastating that I had no choice but to stand up tall and keep fighting, no matter how many times I was knocked down,” Reynolds told reporters, after the judgement.

“This completely concocted, this national scandal, has damaged not just myself (but) my family.

“It cost me my health and my career.

“This was just such a huge and monstrous lie ... I had to stand up and make sure that the truth came out.”

Following the verdict, Higgins said in a statement that she was grateful the matter had finally reached a conclusion.

“I was 24 years old when I was sexually assaulted in Parliament House,” she said.

“Six years have passed — years marked by challenge, scrutiny, and change.

“I accept that Linda Reynolds feelings were hurt by these events and I am sorry for that. I wish her well for the future.

“Thank you to the Australian public for their compassion and understanding throughout this journey.

“My family and I now look forward to healing and rebuilding our lives.”

- With AAP