Katie Price declared bankrupt by court after failing to pay back debts
Katie Price has been declared bankrupt by a London court.
The former glamour model and businesswoman avoided bankruptcy in December 2018 after taking out an individual voluntary arrangement (IVA), which required her to make monthly payments to her creditors to clear her debts.
Having failed to comply with this arrangement, Price was declared bankrupt by Judge Jonathan Middleton at a hearing at the Insolvency and Companies Court in London.
The mother of five now risks losing her £2 million mansion and having her assets sold.
In a 2018 episode of her reality TV show Katie Price: My Crazy Life, Price talked about her financial problems, stating: “I will be out of bankruptcy in a year. It’s 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,” she said.
Price, who is also known as Jordan, was once understood to be worth up to £45 million as a consequence of book, TV and modelling deals.
An avid rider, the 41-year-old released a line of equestrian wear and even tried her hand at music, releasing singles and a joint album with ex-husband Peter Andre as well as competing for a place in the 2005 Eurovision Song Contest.
Price has also appeared in a number of reality shows, including I’m a Celebrity…Get Me Out of Here!, Celebrity Big Brother, and has been a panellist on ITV’s Loose Women.
An IVA is a formal alternative to bankruptcy where debtors agree a repayment plan to creditors with the assistance of an insolvency practitioner.
UK insolvencies hit a seven-year high at the beginning of 2019, according to the Money Advice Trust.
Brexit uncertainty, weak wage growth and restricted credit rules were blamed for the jump, which saw 115,299 people declared bankrupt in 2018, according to reports.
A dramatic rise in the number of IVAs was also cited as another reason for the jump, with the charity expressing concern about the suitability of IVAs for people in debt.
“Our concern is that many people in debt are being led down a route that may not be suitable for their circumstances. The prevalence of online adverts that promote ‘solutions’ to debt involving insolvency procedures may well be a contributing factor to this,” it said.
If you are concerned about debt, contact StepChange who offer free advice around debt: stepchange.org
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