JULIE Hoskin's bankruptcy was an "injustice and a wrongful decision", she told the Australian Electoral Commission as she prepared to launch her electoral run for Bendigo.
"I am not insolvent and should not be a declared bankrupt" the former Bendigo councillor and anti-mosque advocate wrote in a checklist relating to her eligibility under section 44 of the constitution.
The section relates to grounds for elected officials to be disqualified, including if they are an undischarged bankrupt or insolvent.
Ms Hoskin was declared bankrupt last September.
The declaration was made in relation to a matter in which Robert Balzola and Associates was attempting to recoup costs from Ms Hoskin.
Ms Hoskin submitted to the AEC a notice of appeal against Robert Balzola and Associates, the law firm she engaged to run appeals against the approval of the Bendigo mosque.
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The candidate for Fraser Anning's Conservative National Party ticked "yes" on the AEC form when asked if she was an undischarged bankrupt or insolvent.
"I have appealed the bankruptcy application and this is currently before the court," Ms Hoskin wrote.
The AEC did not have the power to determine the eligibility of candidates for federal office, nor conduct checks of those nominating to run, according to information on its website.
It also said that as long as forms were filled in correctly and a relevant deposit paid, "any disqualification of a candidate due to the operation of section 44 of the Constitution can only be determined by the High Court sitting as the Court of Disputed Returns after an election."
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