high price
Katie Price avoids bankruptcy but only has 12 weeks to stave off financial ruin
The reality star, once worth £45million, dodged bankruptcy by submitting an application to pay off her creditors with a payment plan
KATIE Price avoided being declared bankrupt in court this morning after she was given three months to come up with a plan to pay off her debts.
The reality star, 40, did not appear at the High Court's Rolls Building for an in-and-out hearing that saw her team submit proposals for an individual voluntary agreement (IVA).
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An IVA sees debtors pay back their creditors over a period of time.
Her application will be heard in 12 weeks on October 30.
If it is accepted, Katie's mansion would be safe from re-possession.
Katie was once famed for being one of the nation’s savviest businesswomen.
What is an Individual Voluntary Agreement?
An Individual Voluntary Agreement, known as an IVA, is a way to avoid bankruptcy.
It is an agreement between you and the people you owe money to help pay off your debts, usually over five or six years.
If you're a homeowner you'll usually be able to keep your own, as long as you keep up your mortgage payments.
Your credit rating will be negative affected and if at the end of your agreement you've not paid off your debts the rest will be written off
Katie Price's son Harvey throws stones into the sea as the family head to the beach for Bunny's birthday
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In her 2000s heyday, the former Page 3 girl raked in £6.2million for a string of reality shows, £3.5million for an Asda lingerie collection and sold more than three million copies of her books.
But two - soon to be three - expensive divorces and the collapse of her company proved too much for the glamour model to handle.
The Sun revealed the full extent of her financial woes earlier this month, telling how she blew her entire £45million fortune on plastic surgery, luxury holidays and a £1million farm.
Her minimal income has not been enough to cover £10,000 a month repayments on her West Sussex mansion, which is believed to be £100,000 in mortgage arrears.
The sprawling pad near Horsham has a £25,000 a year heating bill and £120,000 army of housekeepers.
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As her cash troubles worsened in recent months, Katie was snapped mowing her own lawn to save money while the mansion’s once-plush tennis court and swimming pool fell into disrepair.
She also started flogging her menagerie of farmyard animals including goats, sheep, horses and lamas for £2,000 a pop.
Bailiffs recently came knocking for an unpaid £3,000 bill - but she blamed it on estranged husband Kieran Hayler, 31.
Katie, who has five children with three different dads, has since moved on from her high-profile split with the former stripper by hooking up with toyboy personal trainer Kris Boyson.
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