Kathy Jackson to avoid court despite order

Former Health Services Union boss Kathy Jackson says she has no intention of going to court to face a multimillion dollar lawsuit, despite a judge ordering the trial to go ahead.

The former national secretary is being sued by the union for more than $2.5 million over claims she used $660,000 of members' funds on personal expenses, including shopping and holidays.

On Friday, a Federal Court justice ordered the civil trial to proceed despite Jackson having declared bankruptcy amid a union application to freeze her assets.

The union believed Jackson was attempting to transfer a Wombarra property to her partner - Fair Work Commission vice-president Michael Lawler - to thwart its lawsuit.

Jackson was declared bankrupt on June 29, before a decision on her assets could be made.

On July 1, she wrote to the union's lawyers to say she would not go to court because her bankruptcy meant any claim against her was now a claim against her estate.

"I do not consider that I have any entitlement to further participate in the proceeding, nor do I intend to do so," she wrote in documents released by the court.

Jackson said her trustee would deal with the lawsuit because the publication of HSU's claims against her in the media had been to her "disadvantage and embarrassment".

The former union boss also said she could not afford to attend a Federal Court hearing.

The trial will proceed on Tuesday.