A former senator's bid to discover where Brittany Higgins' $2.4 million compensation payout went following their bruising defamation battle has been frustrated by a bankruptcy paperwork glitch.

Ex-Liberal senator Linda Reynolds successfully sued Higgins over a series of social media posts the former defence minister believed damaged her reputation.

Reynolds was awarded damages of $315,000 plus $26,109 interest after Western Australia's Supreme Court in August found some of the posts were defamatory.

The former political staffer was also ordered to pay 80 per cent of her former boss's legal costs, which are estimated to be more than $1 million.

Reynolds launched bankruptcy proceedings in October against Higgins to recoup the costs awarded in her defamation win.

A Federal Court hearing

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