Katie Price ‘not co-operating’ in bid to pay back £3.2m debt – leaving her bankrupt indefinitely
It doesn't look like Katie's money problems will be going away anytime soon
DOUBLE-BANKRUPT Katie Price has received another blow after ‘not co-operating’ in paying back her £3.2m debt.
It had previously been anticipated that Katie, 45, would be discharged from bankruptcy after one year had passed – but due to her lack of engagement, the status has remained ‘indefinite’.
The Sun can reveal she remains trapped in her 2019 insolvency, stemming from outstanding tax and mortgage payments.
Despite the appointment of a trustee to assist in resolving her debts exceeding £3million, Katie’s unwillingness to assist has led to the indefinite suspension of her discharge.
Government guidance reveals: “You will be freed from bankruptcy (discharged) after 12 months. This ends the bankruptcy restrictions and releases you from most of the debts you had when the bankruptcy order was made.
“Your bankruptcy can be extended for longer than 12 months if you do not cooperate with your trustee.
“Check your discharge date using the Individual Insolvency Register on our website. If your discharge status is ‘suspended indefinitely’ you need to contact the official receiver for an update.”
It emerged last month the former glamour model had been made bankrupt for a second time over a £750k tax debt.
The London Insolvency and Companies Court was told that Katie owes £761,994.05 to HMRC.
This was after she was previously declared bankrupt in 2019 with debts of £3.2million.
But this time around, the former I’m A Celebrity campmate admitted she was “dealing with serious stuff.”
When The Pricey was questioned by the podcast and was told there was breaking news about her, she remarked: “Has it? Oh get lost… Are you actually serious, while I’m sat here? What have I done now?”
Why is Katie Price bankrupt?
Reality star Katie Price was declared bankrupt in November 2019 and blew her £45million fortune.
What is bankruptcy?
Bankruptcy is a legal status whereby debts cannot be repaid.
In the UK being bankrupt is limited to applying to individuals but in the US and some other countries, it can be applied to companies as well.
The word itself is derived from the Italian phrase banca rotta meaning “broken bank”.
In the modern world, it normally involves a restructuring of debts in an attempt to rehabilitate those who owe the money and sometimes continue with their business.
In most jurisdictions, people or companies are declared bankrupt by a court order.
Is it the same as insolvency?
Bankruptcy is just one type of insolvency in the UK.
There are two legal definitions of insolvency in the UK with one being where a business or individual’s liabilities (what you owe) exceed your assets (what you own), or, where you are unable to pay your debts as they fall due.
Additionally, there are several different types of insolvency, only one of which is bankruptcy, these include:
- liquidation (applies to a limited company or partnership)
- administration (applies to a limited company or partnership)
- company voluntary arrangement (applies to limited companies)
- partnership voluntary arrangement (partnerships)
- individual voluntary arrangement (individuals who can also be made bankrupt)
- debt relief order (where an individual owes less than £15,000)
She explained to the pre-recorded podcast: “I know I had court, I think it was last week or the week before.
“Because of what’s going on in my life, I’ve actually been signed off because… I’m dealing with serious stuff.
“There’s all different kinds of bankruptcy, I think they just use the word ‘bankruptcy’. No-one actually knows the ins and outs of everything.
“And trust me, I don’t get away with stuff either. Like, you can’t, like tax, you can’t ever run away from, you have to pay. Don’t think I sit and don’t pay stuff, because I do.”
The former Loose Women star reportedly did not even send a lawyer to the latest hearing, which is part of a long string of financial woes.
She now faces losing her £2million Sussex pad or she could see bailiffs come around to repossess anything that could help pay back the debt owed to the government department.
Court Judge Sebastian Prentis said she had not responded to HMRC over the debt and declared her bankrupt.
He commented: “There has been no response from the debtor. The papers are in order.
“There is substantial debt due from Ms Price to HMRC and therefore I will make a bankruptcy order.”
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