Katie Price escapes bankruptcy with one-month extension

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 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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