Australian tennis star Mark Philippoussis is facing bankruptcy notice following the reported default on his $1.2 million mortgage for his Williamstown townhouse near the Port Philip Bay in Victoria.

The former ATP tour regular is being sought by Perpetual Trustee Company, which lodged for a substituted service of the bankruptcy notice at the Federal Magistrate Court in Sydney on Monday that allowed the firm to deliver the note to the camp of Philippoussis.

The move came as attempts by Mr Philippoussis to sell the troubled property initially failed to materialise, proceeds of which he allegedly intends to use in servicing the mortgage loan acquired from General Motors Acceptance Corporation (GMAC) in February 2008.

GMAC transferred the loan account to Pepper Home Loans shortly after the firm had exited the Australian market.

Since it is currently the lender on record, Pepper Home Loans chief operating officer David Holmes said that the company is going after Philippoussis for him to settle the mortgage loan for the property, which was reportedly sold for $835,000 in November 2009.

Holmes said that GMAC's case against the former tennis wonder is still active while his company's involvement was effectively terminated when the property was finally re-acquired though he noted that Mr Philippoussis still owed some balance on the loan.

Also, another case was filed against Mr Philippoussis as Perpetual Trustee hailed him to the Victorian Supreme Court last year for allegedly defaulting on a $1.3 million loan.

Known for his searing serves that took him to the top ten rankings during his prime in the late 1990s, Mr Philippoussis last toured the ATP circuit in 2006 though fellow players were expecting him to make a return soon as they believe that the former tennis ace still have the chops for competitive tournaments.