Katie Price’s ‘luxury lifestyle being investigated after she fails to repay £3.2million debt’

BANKRUPT Katie Price is reportedly being investigated - after failing to repay her £3.2million debt.

The Mirror claims bankruptcy trustees are looking into her "luxury lifestyle" after claims she earned a six-figure sum for her new Channel 4 show.

Former glamour model Katie, once worth £45million, was declared bankrupt in 2019.

She was ordered to pay off £12,000 a month to settle her debts.

But after the voluntary arrangement failed, Katie will return to court on February 14 to plan how she'll repay the money.

The newspaper claims sources say she "hasn't been engaging fully in paying creditors".

That's despite earning a healthy sum in TV deals - including a BBC documentary about her son Harvey - and advertising income from her YouTube channel.

She is also paid to promote products on Instagram.

The source said of the trustees: “They are casting the net far and wide to assess how much money is coming into Katie’s coffers.”

The Sun exclusively revealed how her bankruptcy hearing was postponed yet again - and will now fall on Valentine's Day, February 14.

Katie was due to return to court before the end of the year to update trustees on paying back her debts - but the hearing has now been rescheduled.

At the time, a source told us: "Katie was due in court next month but now the court date has been moved to Feb 2022 - which is disappointing for a lot of creditors."

We revealed that she faces prison if she misses her next hearing.

The mother-of-five saw her once lucrative £45million media empire fall apart after the downfall of her third marriage to Kieran Hayler and the collapse of her businesses.

And last year, Katie was hit with a repossession order for her £1.35million home after she failed to repay a debt of more than £500,000 on the property — dubbed the Mucky Mansion.

She faces losing the house if she cannot stump up the cash to pay off her debtors before a repossession hearing.