Katie Price, 45, is set to lose everything apart from the ‘her domestic needs’.
Should the former glamour-model be stripped of her assets, it means she is falling down so hard as she would lose her assets including her £2million ‘mucky mansion’ and other hundreds of thousands she made on OnlyFans.
It is the second bankruptcy within five years as she’s being chased by creditors for a £3.2million payment over the failure of her company Jordan Trading Ltd.
Katie Price Updates
Katie was declared bankrupt for the second time on Monday, after failing to pay a tax bill of more than £750,000 and she’s yet to show up in court to defend herself.
Court documents say the mother-of-five owes £142,405 and £196,735 owed for the tax years 2020-2021 and 2021-2022, plus £140,000 in VAT.
The reality personality has also been charged with late penalties and interest on top of this and has racked up debts of more than £3.2million.
Judge Sebastion Prentis sitting at the High Court Rolls Building said Katie had been served with a petition on November 27 2023 with a demand for £761,994.05.
Experts Weigh in on the Matter
A bankruptcy expert told DailyMail: ‘She would take ”exceptional circumstances” for Katie to keep hold of her £2million home after failing to comply with the terms of both bankruptcies.
‘If someone is driving around in a Porsche then the Trustee should seize it and either give them a Nissan Micra or tell them to take the bus or tube.
‘She is entitled to work and keep her ‘tools of trade’ – so any of her expensive implants would be tricky to seize!
‘What is unusual is being made bankrupt a second time in reasonably short succession, that is, within five years. It does happen but most bankrupts avoid it.
What Will Happen to Katie Price?
‘They can take her rights to earnings developed since the first bankruptcy. If she published a book, that means the royalties, the OnlyFans income streams arising after the first bankruptcy if not already claimed by the first Trustee should by rights fall within a new Income Payments Arrangement.
Any new assets since the first bankruptcy will fall now into the second bankruptcy up to the date of the bankruptcy order.
‘As for criminal proceedings, it is possible in view of her status. You will recall what happened to Boris Becker. Jonathan Aitken lost his watch [a Rolex].
‘Most people with this wealth would get decent solicitors and keep themselves out of jail and argue the law with finesse. That is what arguably lawyers are for when protecting wealthy clients perhaps. She seems to have not done this from what I can gather.
‘She failed to comply with her Income Payments Agreement in the first bankruptcy and obviously has not properly cooperated. Not turning up to court hearings – or sending a lawyer/barrister to represent you – is non-cooperation.’
Meanwhile, Katie Price is not showing she’s moved despite she’s declared bankrupt. After the hearing, Katie posted a video of a pink Porsche GT3RS worth £194,000 onto her Instagram.
Katie Price Reacts
She said about her bankruptcy news that she ‘doesn’t get away’ with not paying, insisting that she is making payments.
She told the media outlet: ‘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 – tax you can’t ever run away from, you have to pay. Don’t think I sit here and don’t pay stuff because I do.’
She said: ‘I know I had court 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.’
