We reprint this excellent article by Shane Dowling from the Kangaroo Court of Australia
Will Linda Reynolds have to declare bankruptcy if Brittany Higgins doesn’t pay?
Brittany Higgins might not have to pay Linda Reynolds, the $315,000 plus $26,000 interest she was awarded on Wednesday (27/8/25), if Higgins declares bankruptcy.
If Higgins does declare bankruptcy, and doesn’t have to pay Reynolds, it could cause a domino effect and drive Reynolds into bankruptcy because Reynolds would be left on the hook for her own legal fees, for suing Brittany Higgins, which would likely be somewhere between $500,000 and $1 million.
News.com reported (27/8/25):
News.com.au has previously reported that legal experts believe Sen Reynolds could struggle to recover her costs if she wins her defamation case against Ms Higgins because a $2.4m compensation payout may be “protected” if the former political staffer is forced into bankruptcy.
and:
Professor Jason Harris, a specialist in corporate law, insolvency law and commercial law in the Sydney Law School and director at the Ross Parsons Centre of Commercial, Corporate and Taxation Law said that his reading of the deed of settlement suggests the proceeds could be protected even if Senator Reynolds wins the case.
“A payment of compensation for a wrong done to a person (either before or during bankruptcy) is exempt from distribution to creditors if the person becomes bankrupt,” Prof Harris said.