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The bankruptcy date has been retroactively set to October 8, according to court documents.
Outside a Perth courthouse, Reynolds’ attorney, Rachel Ross, stated, “The estate will be transferred to the bankruptcy trustee, who will manage her affairs and address the creditors in due course.”
Additionally, Higgins has been ordered to cover 80 percent of her former employer’s legal fees, an amount exceeding $1 million.
Reynolds’ legal representative, Martin Bennett, previously noted that the bankruptcy filing would enable Reynolds to determine how much of Higgins’ settlement from the Commonwealth remains, as she seeks to recover her defamation case costs.
Following the conclusion of the intense five-week defamation trial, Higgins issued an apology to Reynolds after the former defense minister secured a legal victory.
Justice Paul Tottle found Higgins’ social media posts carried an array of imputations.
The 360-page judgment made factual findings about the events involving Reynolds and Higgins, including her alleged 2019 rape and the events in the years after it.
Higgins made 26 false or misleading statements in media interviews after her alleged sexual assault, the judgment said.
She alleges former co-worker Lehrmann raped her in the senator’s ministerial suite.
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 co-worker in the office.
Lehrmann has lost an appeal against that finding but has flagged taking the case to the High Court.
He denies the rape allegation, and his criminal trial was derailed by juror misconduct.
Higgins’ husband, David Sharaz, was also served with a bankruptcy notice by Reynolds and is expected to declare bankruptcy.
He was also found to have defamed the former politician and was ordered to pay $85,000 in damages plus interest and costs.