Full Breakdown
Brittany Higgins Declared Bankrupt Following Defamation Case Against Linda Reynolds
12/12/2025, 5:54:11 AM
Legal Proceedings and Bankruptcy Declaration
Brittany Higgins has been declared bankrupt by the Federal Court of Australia, following a successful defamation lawsuit brought against her by her former boss, Linda Reynolds, a former Liberal senator. The court's ruling, issued by Justice Michael Feutrill, comes after Reynolds sought bankruptcy proceedings in October 2025 to recover damages and legal costs stemming from the defamation case. The court backdated the bankruptcy declaration to October 8, 2025, and appointed trustee Daniel Juratowitch to manage Higgins' financial affairs.
Reynolds was awarded $315,000 in damages plus $26,109 in interest after the Western Australia Supreme Court found that Higgins had defamed her through a series of social media posts. These posts alleged that Reynolds engaged in harassment and mishandled Higgins' rape allegation, which she claims occurred in Reynolds' ministerial office in March 2019. The court also ordered Higgins to pay 80% of Reynolds' legal costs, estimated to exceed $1 million.
Background of the Defamation Case
The defamation trial, which lasted five weeks, concluded in August 2025, with Justice Paul Tottle ruling that Higgins had made 26 false or misleading statements about Reynolds. The judgment detailed the implications of Higgins' posts, which were deemed damaging to Reynolds' reputation. In a separate legal context, Bruce Lehrmann, the individual Higgins alleges raped her, was found to have committed the act on the balance of probabilities in a civil case, although he denies the allegations and has faced legal challenges of his own.
Financial Implications and Next Steps
The bankruptcy proceedings are significant as they may reveal the status of Higgins' $2.4 million compensation payout from the Commonwealth, which she received in 2022. Reynolds' legal team is expected to investigate whether any of this settlement remains accessible to cover the debts owed to her. Reynolds expressed that the bankruptcy ruling was not a victory but rather a necessary step due to Higgins' failure to pay the ordered damages.
Higgins' husband, David Sharaz, has also been served with bankruptcy papers and is anticipated to declare bankruptcy himself after being found liable for defaming Reynolds, with damages set at $85,000.
Official Statements and Responses
Linda Reynolds stated, “I don’t consider today to be a victory. Rather it is the inevitable consequence of a failure by Ms. Higgins to pay the damages she was ordered to pay by the court.” She emphasized the emotional and financial toll the legal battle has taken on both parties, noting that the proceedings were not taken lightly.
Criticism and Opposition
Critics of the proceedings have pointed out the emotional strain on Higgins, who has publicly stated her financial difficulties. The legal actions have raised questions about the impact of high-profile defamation cases on mental health and the broader implications for victims of sexual assault.
Conflicting Reports & Gaps
While the court has ruled in favor of Reynolds, there are ongoing discussions regarding the handling of the bankruptcy notice, particularly concerning the method of service to Higgins' lawyer rather than directly to her. This aspect has been a point of contention and may affect the proceedings' timeline.
Verbatim Quotes
- “The fact of the matter is that I was put to the cost of an expensive Supreme Court trial to prove Ms Higgins egregiously lied about my conduct and to put an end to the continuation of these lies,” — Linda Reynolds, Former Liberal Senator
- “This is not a step that I wanted to take or have taken lightly.” — Linda Reynolds, on the bankruptcy proceedings.
