KATIE Price has been declared bankrupt for the second time, a court was told today.
The glamor model, 45, who was not in court to hear her fate, has an unpaid tax bill worth more than £750,000.
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Katie Price declared bankrupt, court heard Credit: Rex
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The glamor model has an unpaid tax bill of more than £750,000Credit: instagram
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Katie, pictured with her boyfriend JJ Slater, failed to appear in courtCredit: Instagram/johnjoeslater
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The glamor model is now in danger of losing her £2million homeCredit: Splash
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This is the second time Katie has gone bankrupt Credit: Instagram
It was previously declared bankrupt in November 2019, with debts of £3.2m.
Katie, 45, didn’t even send a lawyer to the hearing, the latest in a long line of financial problems.
She now faces losing her £2m Sussex flat, dubbed the Mucky Mansion – or could see bailiffs recover anything that could help the government department.
The hearing, held at the Rolls Building in London, revealed that he owes HMRC a total of £761,194.05.
Judge Sebastian Prentis said Katie had failed to respond to HMRC about the debt and declared bankruptcy.
He said: “There is no response from the debtor, the papers are in order.
“There is a significant debt owed by Mrs Price to HMRC and I will therefore make a bankruptcy order.”
Katie, 45, avoided court for months after the case was adjourned six times since November 2021.
The reality star and model is fighting to save her £2million flat in Sussex after racking up £3.2million in debt.
According to court documents, £535,700 of unpaid National Insurance or Self-Assessment Tax makes up the bulk of the debt, as well as £40,000 in late payment penalties.
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In addition, he owes more than £140,000 in unpaid VAT on top of nearly £10,000 in additional VAT.
The £761,994 claim is understood to be for a “liquidated amount”, suggesting she may have to sell assets or properties to free up capital.
The judge said: “This petition was brought on 27 November 2023. The sum is £761,194.05. This sum comes from the self-assessment for the years 2020-2021.
“And for that year 2021-2022. the amounts payable under those assessments were £142,405 and £196,735.
Why is Katie Price bankrupt?
Reality star Katie Price was declared bankrupt in November 2019, wiping out her £45m fortune.
What is bankruptcy?
Bankruptcy is a legal status in which debts cannot be repaid.
In the UK, bankruptcy is limited to individuals, but in the US and some other countries, it can also apply to businesses.
The word itself is derived from the Italian phrase banca rotta which means “broken bank”.
In the modern world, this usually involves debt restructuring in an attempt to make those who owe money whole, and sometimes to keep the business going.
In most jurisdictions, people or businesses are declared bankrupt by court order.
Is it the same as bankruptcy?
Bankruptcy is just one type of insolvency in the UK.
In the UK there are two legal definitions of insolvency, one is when the liabilities of a business or individual (what you owe) exceed your assets (what you own) or when you are unable to pay your debts when they fall due.
In addition, there are several different types of insolvency, only one of which is bankruptcy, and these include:
- liquidation (refers to a limited liability company or partnership)
- administration (refers to a limited liability company or partnership)
- voluntary arrangement of the company (applies to limited liability companies)
- partnership voluntary arrangement (partnerships)
- individual voluntary arrangement (natural persons who may also be bankrupt)
- debt relief order (where the individual owes less than £15,000)
“The second main category in the petition is VAT owed on applications. There are eight of them, which are applications between August 31, 2021 and May 31, 2023.
“The total amount is just over £140,000. As with self-taxation of income tax, there were no payments either.
“The balance of the petition is therefore fines and surcharges, interest and the like.
“The legal request to support the petition was served in person on October 10.
“As of January 31, 2024, there is no answer from the debtor, and the papers are in order. There is a substantial debt owed by Mrs Price to HMRC and I will therefore make a bankruptcy order at 12:03.”
Which famous people went bankrupt?
Several celebrities have filed for bankruptcy over the years, here are just a few of the big names that have filed over the years:
- Donald Trump has declared bankruptcy for six of his companies over the years in business, but has never personally filed
- Meghan Markle’s dad Thomas filed for bankruptcy last year with credit card debts of £24,181
- 50 Cent filed for bankruptcy in 2015 despite once being worth an estimated £119 million
- Former Westlife singer Shane Filan filed for bankruptcy in 2012 with debts of £20.5m
- Lady Gaga technically went bankrupt during her 2009 Monster Ball tour
The Channel 4 reality star is due to give evidence at a bankruptcy court in London next month in relation to her first bankruptcy.
She is expected to give the judge a statement of her income to show how she can pay off her debts.
Last month, the court heard she had failed to pay any of the £12,500 monthly payments she agreed to in April last year.
According to trustees, the deal meant Katie was to pay monthly payments of £12,500 over three years, as well as a lump sum of £25,000 in July.
But she is said to be late with every payment.
A judge issued a court order ordering Only Fans, two clothing companies and a paparazzi agency to pay 40% of her earnings into a bank account she does not have access to.
A percentage of her income will begin to be taken from April 12, the judge ruled.
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Katie Price could lose her £2m homeCredit: Instagram
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The mother of five was not in court to hear her fate Credit: Getty
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