Katie Price is declared bankrupt and risks losing her ‘mucky mansion’ after blowing her £45million fortune
Katie Price declared bankrupt weeks before Christmas after blowing £45m fortune
Katie Price has been declared bankrupt after failing to pay off thousands of pounds in debt – and several warnings from her creditors
Katie Price has been declared bankrupt after failing to pay back thousands of pounds in debt.
The mum of five now risks losing her mucky mansion after being told she’s no longer solvent.
Price, 41, was declared bankrupt at a London court, having blown her entire £45million fortune over the years.
But she didn’t bother turning up in person – nor did she send a lawyer to fight her corner.
JMW Solicitors, who represented the insolvency practitioner overseeing Price’s IVA, said: “She hasn’t acknowledged the petition.”
She had submitted a payment plan in the form of an Individual Voluntary Agreement late last year to manage repayments of an estimated £250,000 of debt.
But Katie was unable to meet her creditors’ demands and couldn’t pay back the six-figure amount in time.
She was supposed to be paying off £12,000 a month to her various creditors.
Katie Price has been declared bankrupt by a court (Image: Quest Red)
But Katie failed to satisfy the terms of her debt plan and in September a bankruptcy charge was laid on her West Sussex mansion.
Judge Jonathan Middleton told the court: “Ms Price isn’t present or represented so there is, as far as we can identify, no opposition.
“I do judge Ms Price to be bankrupt.”
“The date is today and the time is 12:35.”
The 41-year-old, formerly known as Jordan, was once said to be worth £45million.
At a hearing in October last year, she was given time to negotiate a deal with the taxman over her finances and her proposal for an IVA was accepted on November 30 2018.
Katie’s bankruptcy will have an impact on her crumbling business empire (Image: Quest Red)
An IVA is a formal agreement which lets people with debt repay their creditors at an affordable rate in a bid to avoid bankruptcy.
However, the renewed bankruptcy proceedings were brought after she failed to meet the terms of the agreement.
In recent months, Katie has splurged on holidays abroad, home renovation projects and multiple rounds of plastic surgery, which she hinted she was getting for a reduced rate or for free in exchange for Instagram exposure of the clinic in question.
She’s also been papped going on shopping trips with her on/off boyfriend Kris Boyson.
She showed a flippant attitude to bankruptcy in a 2018 episode of her reality series My Crazy Life, telling the camera: “I will be out of bankruptcy in a year. Its not that bad.
“I’ve got nothing to be ashamed of anymore. Loads of people go through it like me. It’s just a matter of going through the motions. This is what has to be.”
Katie’s case was heard at the Insolvency and Companies Court in London’s Rolls Building, under her real name Katrina Amy Alexandra Alexis Price.
Katie has managed to blow several million quid (Image: Rex Features)
Her one-time bulging bank balance was bolstered by perfumes, lurid books, autobiographies, photoshoots and magazine deals, making her a millionaire several times over.
But it all started to go wrong following her 2009 split from Peter Andre amid much-denied claims she cheated with her horse riding instructor, Andrew Gould.
In 2010 she revealed how ASDA discontinued her bra range, Panache, and she ended up selling her babywear range online, despite it having been destined for Mothercare and Selfridges.
Over the years came a more lavish lifestyle, with Katie picking up the bill for luxurious holidays with her five kids, more plastic surgery and the enormous mansion in Sussex.
Even in 2018 when her finances looked more precarious, a source close to the star claimed she couldn’t stop ordering clothes, shoes, toys and other gifts for her kids, her boyfriend Kris Boyson and herself online.
Despite splitting from third husband Kieran Hayler in April 2018, Katie hasn’t been able to divorce him yet because of the costs involved.