Former glamour model, KATIE PRICE, declared bankrupt for the second time

Monday, March 18, 2024
 – Former glamour model, Katie Price has been declared bankrupt for the second time over an unpaid tax bill worth more than £750,000.

Price was previously declared bankrupt in 2019, owes £761,994.05 to HM Revenue and Customs.

The model who was previously declared bankrupt in November 2019, with debts of £3.2million, did not send a lawyer to her recent hearing which is the latest in a long string regarding her financial woes.

She now faces losing her £2million Sussex pad, dubbed Mucky Mansion - or could see bailiffs come round to repossess anything that could help pay back the government department.

At London’s Rolls Building, Insolvency and Companies Court Judge Sebastian Prentis said "there has been no response from the debtor. The papers are in order. There is substantial debt due from Ms Price to HMRC and therefore I will make a bankruptcy order."

45-year-old Katie has dodged court for months after the case was moved half a dozen times since November 2021. The reality star and model is battling to save her £2million Sussex pad after running up debts of £3.2million.

According to court papers, £535,700 in unpaid national insurance or self-assessment tax make up the majority of the debt, as well as £40,000 in late payment fines.

In addition, she owes over £140,000 in missing VAT payments on top of almost £10,000 in VAT surcharges. The £761,994 claim is thought to be for a "liquidated sum", which suggests she may need to sell assets or real estate to release equity.

The judge said;

“This petition was presented on 27 November 2023. It is in the sum of £761,194.05. That sum derives from self assessments for the years 2020-2021.

“And for that year 2021-2022 the amounts payable under those assessments were £142,405 and £196,735. The other main category on the petition is VAT due on returns. There are eight of those, being the returns between 31 August 2021 and 31 May 2023.

“The total of those is a little in excess of £140,000. Just as with the income tax self assessments, no payments at all have been made.

“The balance of the petition is therefore penalties and surcharges and interests and such like. The statutory demand in support of the petition was served personally on the 10 October.

“On 31 January 2024 there has been no response from the debtor and the papers are in order. There is a substantial debt due from Mrs Price to HMRC and I will therefore make a bankruptcy order at 12.03pm."

The Channel 4 reality star is due to give evidence before an insolvency court in London next month in connection with her first bankruptcy. She is expected to give evidence to a judge about her income to show how she can pay off her debts.

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