Katie Price escapes bankruptcy with one-month extension

Price has been given another month to sort her finances out. (REX)
Price has been given another month to sort her finances out. (REX)

Katie Price has avoided bankruptcy once again and has been given a month’s extension to determine the outcome of her outstanding debts. During a High Court hearing on Tuesday, former glamour model Price was awarded an extension until early December to settle an unpaid tax bill of £22,000.

Price, who was not present at court and who was once worth upwards of £40 million, will now have until December 4 to find out if her repayment plan has been accepted by HMRC. If rejected, her finances could be declared insolvent and a trustee appointed to sell off her assets. This will likely include her £2 million country mansion, which is currently on the market.

2018 has proven to be a particularly trying year for Price, formerly known as Jordan. In addition to her financial difficulties, the mother-of-five is going through a divorce with her cheating husband Kieran Hayler and her mother Amy Price is terminally ill with idiopathic pulmonary fibrosis.

Price was arrested earlier this month on suspicion of drink-driving after being found by police at 2am in a damaged car in Woolwich, south-east London. This was during her 28-day rehabilitation stint at The Priory for post traumatic stress disorder (PTSD).

The former glamour model was once worth over £40 million
The former glamour model was once worth over £40 million

The former Loose Women contributor revealed in July that she had reported herself to police for violating a driving ban which was handed to her in February after she was caught speeding.

Judge Jonathan Middleton was told by lawyers for HMRC that they had been notified of a proposal for an Individual Voluntary Agreement (IVA) on behalf of Price just hours before the short hearing on Tuesday.

Rachel Lam, for HMRC, said a meeting of Price’s creditors was due to take place on November 16.

Faith Julian, representing Price, said she was instructed to ask the judge to adjourn the case until December 4 – to which Judge Middleton agreed.

The case was previously adjourned after a hearing in August to allow time for the consideration of an IVA. An IVA is a formal agreement which lets people with debt repay their creditors at an affordable rate, in a bid to avoid bankruptcy.

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