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Katie Price ‘could lose everything’ including her Mucky Mansion home & ‘may face prison time’ as she’s declared bankrupt
It is not the first time Katie has been declared bankrupt
KATIE Price could "lose everything" after being declared bankrupt for the second time.
She faces having her £2 million Mucky Mansion repossessed and could be jailed for failing to pay a tax bill of £761,994.05.
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The mum-of-five owes £142,405 and £196,735 for the tax years 2020-2021 and 2021-2022, plus £140,000 in VAT.
On top of this, she's been charged late penalties and interest, and racked up debts of more than £3.2million.
The 45-year-old had not responded to HM Revenue & Customs (HMRC) over the debt, a court was told on Monday.
The demand for payment was made by HMRC last October.
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A bankruptcy expert has warned the former glamour model could lose all assets which aren't deemed necessary to day-to-day life.
"Nobody has domestic needs to live in a 'mucky mansion'", the expert told .
They added: "If someone is driving around in a Porsche then the Trustee should seize it and either give them a Nissan Micra or tell them to take the bus or tube."
Alice Haine, personal Finance Analyst at Evelyn Partners, explained how a bankruptcy order effectively writes off a person’s debts.
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She told The Sun: "People can apply for bankruptcy if they have debts they cannot afford to repay.
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"Though this is typically something debtors' resort to after they have exhausted all other options to clear.
"When the application goes in, any assets they have, such as property, cars, jewellery or digital goods will be assessed to see if selling these can help to pay off some of the debts."
Katie, who was not at Monday's hearing at London's Rolls Building, was visited by bailiffs before Christmas.
They appeared to take a fleet of cars to recoup a £250,000 debt she owes her ex-husband.
Katie - thought to earn £2.2 million a year on OnlyFans - failed to comply with her Income Payments Agreement when she was made bankrupt the first time in 2019.
The model later posted a video of a pink Porsche GT3RS worth £194,000 onto her Instagram.
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