Culleton should quit the Senate: Hanson

One Nation leader Pauline Hanson has urged Rod Culleton to act honourably and step down from his Senate seat after the federal court ruled him bankrupt.

"I feel sorry for Rod Culleton and his family": Pauline Hanson. Source: AAP

Pauline Hanson has urged former One Nation senator Rod Culleton to act honourably and give up his Senate seat.

Senator Culleton was declared bankrupt after a Federal Court hearing in Perth on Friday.

"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," the One Nation leader tweeted.

Justice Michael Barker on Friday granted a 21-day stay on the bankruptcy order.

The WA District Court had ordered Senator Culleton to pay former Wesfarmers director Dick Lester $205,536 in 2013 - which has since increased to $280,000 - over unpaid rent relating to a $13.2 million 2009 property acquisition deal that soured.

Senator Culleton responded angrily to the decision outside of court.

"I knew when he (the judge) reserved his decision, he was going away to write it so he'd sharpen the knives. He was pretty quick to use them, quicker than the local butcher," he told reporters in Perth.

"It's not a fair go."

Senator Culleton quit One Nation on Sunday and Senator Hanson said she was pleased to see him go, describing him as a pain in her backside.

Friday's ruling has implications for the make up of the Senate crossbench.

By law if a senator is declared bankrupt they are disqualified from the position.

If Senator Culleton loses his appeal, and the bankrupcy order takes effect, Senate President Stephen Parry will have to wait until the outcome of a separate legal matter in the High Court, before notifying the West Australian governor on how to fill the vacancy.

There is a High Court challenge over Senator Culleton's eligibility to contest the July 2 election following a larceny conviction, which was later annulled.

If the High Court rules his election is invalid then it would declare the position vacant and there could be a vote recount ordered which may result in him being replaced by his brother-in-law Peter Georgiou, who was number two on the One Nation senate ticket in WA.

If the court finds he was eligible to stand, then there would be a casual vacancy under section 15 of the constitution and One Nation would be able to nominate another person for the seat.