Former Health Services Union Boss Kathy Jackson claims that she is bankrupt, but the union's legal pursuit of more than $2.5 million misused funds from the former boss term continues.

Ms. Jackson is accused by the Health Services Union for allegedly spending the member's fund of pproximately $660,000 on. her personal expenditures

Jackson was due to appear in Court on Monday for a two week hearing, but she did not show up. Instead, her camp declared Ms. Jackson's bankruptcy.

After hearing the news, Mark Irving the barrister of the union informed the court that they will continue suing her. Now the union is seeking for $2.5 million from the former boss, which now includes cost and interest.

They also want to freeze Jackson's assets, for she is allegedly trying to transfer her property to her partner Michael Lawler, who is the Fair Work Commission Vice- President, to thwart the lawsuit. There was a signed agreement between Jackson and her partner, which was dated June 22, 2014, to transfer her property in the NSW south coast to Lawler. The property was bought for $1.3 million.

Justice Richard Tracey released an order on Monday, preventing the transfer of the property.   

The union is also seeking further information from Ms. Jackson's bankruptcy trustee, for it was a week ago only when Jackson made a sworn statement that she had $278,683 of net assets.

In documents tendered in court last week, Jackson denied the allegations about moving her assets, for she discussed selling her property to her partner last year to support her legal fees and they were advised  that the decision was lawful. Jackson even challenged the Health Services Union to support their claim with evidence.

Mr. Lawler also did not appear in court on Monday, but was represented by James Johnson,his barrister. Mr. Johnson is the one that claimed Ms. Jackson's bankruptcy.

Justice Tracey adjourned the case to Friday.