TOO HIGH A PRICE
Katie Price faces losing her £2m ‘mucky mansion’ as she’s declared BANKRUPT
KATIE Price was declared bankrupt today after failing to pay back spiralling debts.
The 41-year-old was supposed to be paying off £12,000 a month to her creditors after taking out an individual voluntary arrangement (IVA) 12 months ago - but has failed to do so.
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She was once worth an estimated £45 million.
But now, Katie faces losing her £2 million “mucky mansion” in Dial Post, West Sussex and having her assets taken and sold by an appointed trustee to pay her debts.
Her fate was decided during a hearing at the Insolvency and Companies Court in London today.
The reality TV star, who was not present at the hearing and was not represented at court, was declared bankrupt at 12.25pm.
She had avoided going bust last December by agreeing a plan to pay back what she owed.
Katie was allowed to enter into the IVA, the deal to pay back some of her debts, when she agreed to pay the £12,000 a month over the course of four years.
She is believed to have debts of around £800,000 in total.
However the terms of that plan had not been kept to - and she was today declared bankrupt following a hearing at the Rolls Building in London.
FACES LOSING 'MUCKY MANSION'
She threw a party at the mansion, which has had a makeover and been painted in neutral colours, this weekend as she taped her reality show My Crazy Life.
Despite her money issues, Katie has continued to live the high life including enjoying a series of luxury holidays, a full body overhaul with surgery and renovations on her mansion.
Last week, Katie’s pink Range Rover was spotted on sale at a used car dealership in Essex with the sign “repo” - short for repossession - on the windscreen.
The thrice-married mum-of five split from most recent husband Kieran Hayler last year.
She is currently dating toyboy Kris Boyson, 30, a personal trainer who has supported her through her money woes.
Price was the winner of the fifteenth series of Celebrity Big Brother and was runner-up in the search for the UK's entry for the Eurovision Song Contest in 2005.
Last month Price was hit with a two-year driving ban for refusing to tell cops who was behind the wheel when her pink Range Rover crashed last year.
She served two other driving bans earlier this year.
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Katie Price makes grovelling apology to Kris Boyson after cheating scandal and shows off ruined mucky mansion in reality show trailer
WHAT IS BANKRUPTCY AND HOW DOES IT AFFECT YOU
WHEN you’re declared bankrupt your bank account may be frozen immediately and any items of value that you own, such as a house or car, may be taken away from you.
A person called an Official Receiver or Trustee is put in charge of your assets.
You will have to ask them before you spend money and you will only be given basic living expenses during the period of bankruptcy.
You are usually discharged from bankruptcy after 12months - but sometimes this can last longer.
For example, when Kerry Katona was declared bankrupt for the first time in 2013 it took over two years for her to get discharged.
You can’t borrow more than £500 without declaring your bankruptcy status, which makes it highly unlikely that you’ll be able to be accepted for credit.
Your home may be taken away from you and sold - but you may be given 12 months to find a new place.
You will be allowed to keep a car if its essential to your work, as well as clothing, basic household items, and bedding.
But if furniture is expensive then you may be told to replace this with cheaper alternatives.
Any money you make from the sale of items is then paid to your creditors.
Your credit score will be negatively affected too. A bankruptcy will stay on your record for at least 6 years and it could be as long as 15 years if you are subject to restrictions.
If you apply for bankruptcy it costs £680 but if a creditor - a firm which you owe money to - goes bankrupt then you won’t have to pay the fees.
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