Senator Rod Culleton declared bankrupt by Federal Court judge

A Federal Court judge has declared Rod Culleton bankrupt, meaning he may lose his Senate spot.

Senator Rod Culleton arrives at The Federal Court in Perth today.

Controversial former One Nation senator Rod Culleton has lashed out a Federal Court judge after being declared bankrupt, in a ruling that could lead to his exclusion from federal parliament.

Justice Michael Barker found today that Senator Culleton was bankrupt over his failure to pay a $280,000 debt to a Perth businessman, former Wesfarmers director Dick Lester.

The date of the act of bankruptcy was August 29 this year. But Justice Barker granted the rogue MP a stay of 21 days before the orders come into effect and his estate is seized.

An irate Senator Culleton, who represented himself, yelled at the judge after the order was made for his estate to be sequestrated.

“You’ve just executed me and I’m bleeding to death,” he said. “You’ve just given away my estate.”

The decision means Senator Culleton – who was elected for One Nation but defected last weekend — is now a bankrupt and is therefore ineligible to serve as a senator under section 44 of the Constitution.

It is unclear whether the bankruptcy order will immediately lead to a casual Senate vacancy in WA, which would be filled by One Nation.

Legal experts say the president of the Senate may choose not to take action before a separate ruling, expected next month, in a High Court challenge against the senator’s eligibility.

A specialist in constitutional law, University of Sydney professor Anne Twomey, said she expected the clerk would wait for the decision of the High Court, which may find Senator Culleton was never validly elected.

If Senator Culleton loses the High Court case, his most likely replacement is his brother-in-law Peter Georgiou, who was the next One Nation candidate on the Senate ballot paper in WA.

One Nation leader Pauline Hanson tweeted after the judgment: “I feel sorry for Rod Culleton and his family but this was the right ruling. I hope he now acts honourably and steps down with dignity.”

I feel sorry for Rod Culleton & his family but this was the right ruling. I hope he now acts honourably & steps down with dignity #auspol

— Pauline Hanson (@PaulineHansonOz) December 23, 2016

Professor Twomey said today’s ruling meant Senator Culleton was a bankrupt, irrespective of the 21-day stay on the order.

But speaking outside court, Senator Culleton denied he was a bankrupt and said he would remain as a senator.

“I’m just in a legal rip. I’ll just float on my back for a while and swim to the side because I’m not bankrupt at the moment – 21 days it’s been stayed,” he said.

“I’ll just go and set the purported order aside at the Supreme Court.

“I can still stand as a senator and I will fight it to the end.

“This is my livelihood – not only for me but for my children.”

Senator Culleton said the judge had no right to sequester his estate.

“I’ve worked too hard for some single judge to turn around and say he’s going to strip all my assets – who is he to do that?”

Senator Culleton said it was unfair that he was forced to argue his case on Monday in the presence of two men who were later arrested for allegedly breaching a restraining order against his wife Ionna.

“Where was that fair? I had one hour as a self-litigant to put my case and I had police coming in and out of the courts with two criminals in there,” he said.