Brittany Higgins has been dealt another financial blow after her former boss launched bankruptcy proceedings to recoup costs awarded from her defamation win.

Former Liberal senator Linda Reynolds sued Higgins over social media posts she believed had damaged her reputation.

In August, a Western Australian Supreme Court found the posts were defamatory and awarded damages of $315,000 plus $26,109 interest to Reynolds.

Higgins was also ordered to pay 80 per cent of Reynolds’ yet-to-be-determined legal costs, but is appealing elements of the judgment.

She is challenging the damages and costs orders, and the finding that she breached a 2021 deed of settlement between the pair by referring to herself as a “defamation victim” in an Instagram post.

Reynolds confirmed on Tuesday that she had filed a creditor’s petition in the Federal Court, claiming Higgins “failed to comply” with a bankruptcy notice issued to her several weeks ago.

“It is unfortunate that I have to take this step in this long-running saga,” she said.

“As I have said, this is conduct which comes as no surprise to me. However, what should be plain now is that I am committed to seeing this through to the end.”

Federal Court records show that Reynolds filed the bankruptcy proceedings against Higgins on Friday.

She has also served Higgins’ husband David Sharaz with similar bankruptcy proceedings. He is expected to declare bankruptcy.

Sharaz and Higgins declined to comment on the latest court cases when contacted.

Before going to trial, Higgins had offered to pay Reynolds $200,000 as a contribution to her legal costs, with her parents to pick up the tab. The offer was rejected.

Higgins apologised to Reynolds following the former defence minister’s high-profile five-week defamation trial victory in September 2024.

The trial centred on a tweet Higgins and Sharaz published in January 2022, which carried imputations that Reynolds pressured Higgins not to proceed with a sexual assault complaint and that she was a hypocrite in her advocacy of gender equality and female empowerment.

Justice Paul Tottle found Higgins’ social media posts were defamatory after they implied Reynolds engaged in a campaign of harassment against Higgins, mishandled her rape allegation and engaged in questionable conduct during Bruce Lehrmann’s aborted criminal trial for rape.

The 360-page judgment made factual findings about events involving the pair, including Higgins’ alleged 2019 rape and that Higgins made 26 false or misleading statements in media interviews.

She alleges former co-worker Lehrmann raped her in the Reynolds’ ministerial suite, a claim he has always denied. His criminal trial was aborted due to juror misconduct.

A Federal Court judge overseeing a defamation case launched by Lehrmann against Network Ten found Higgins was, on the balance of probabilities, raped by her former colleague in the office.

Lehrmann is appealing that finding.

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-AAP