Katie Price avoids bankruptcy after reaching a deal to pay off her debts

Katie Price has avoided bankruptcy once again after reaching a deal to pay off her debts.

The former glamour model had been given time to come to an agreement with her creditors following an earlier court hearing.

The case was previously adjourned in August to allow time for the consideration of an Individual Voluntary Agreement (IVA).

And lawyers have told the court on Tuesday (December 4) that her IVA proposal has been accepted, meaning that the petition to make her bankrupt has been dismissed.

Deputy Insolvency and Companies Court Judge Middleton said: “This case has been dismissed after the parties concerned reached an out of court agreement.

Speaking to the Press Association after her hearing in August, a representative for the reality TV personality said: “Katie is aware of the hearing and is working with her advisers to resolve her current financial issues.

“She hopes to be in a position to do so and reach agreement with her creditors.”

The former I’m A Celebrity… Get Me Out Of Here! star was once said to be worth more than £40 million.

Price, formerly known as Jordan, has been married three times and has been in the headlines following the collapse of her most recent marriage to Kieran Hayler.

Back in October, she was Katie Price arrested on suspicion of drink-driving. She allegedly crashed her bright pink Range Rover into a bush in south east London on her return home from a party.

Police said the 40-year-old remained at a South London station after being arrested at approximately 2am.

Price also recently revealed that her mother, Amy Price, has been diagnosed with idiopathic pulmonary fibrosis (IPF) – the same disease that killed TV presenter Keith Chegwin.

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