Katie Price avoids bankruptcy AGAIN with another extension but could still be ‘homeless’ by Christmas
KATIE PRICE avoided bankruptcy by hours today after submitting a last-gasp proposal to rescue her finances.
The former glamour model had been given 12 weeks in August to thrash out an Individual Voluntary Agreement (IVA) with her creditors - a process that allows her to pay back debts over time.
Details of the proposed agreement were anticipated to be heard at the High Court in London today.
But HMRC told a judge that Price’s team only submitted their IVA proposal at the last minute - only just receiving it in full this morning.
It means her bankruptcy hearing has now been pushed back until December 4.
Rachel Lam, for HMRC, said a bankruptcy order was close to being proposed this morning because they had not received an IVA proposal, which Katie had months to prepare for.
An IVA is a formal agreement which lets people with debt repay their creditors at an affordable rate, in a bid to avoid bankruptcy. If the IVA is rejected, she could be declared bankrupt by Christmas.
Should that happen, the star’s bank account will be frozen and a trustee will assess what can be sold to make the money to cover her debts.
If an IVA is agreed, the mum-of-five will most likely get to keep her sprawling £2million mansion in Horsham, West Sussex, as part of the deal.
It comes after Price, once said to be worth more than £40million, was warned her home would need to undergo a £150,000 makeover for it to be sold.
Her sprawling pad countryside home is said to be £100,000 in mortgage arrears with a £25,000 a year heating bill. Katie was even snapped mowing her own lawn as her cash troubles worsened.
The Home Staging Association’s Director, Paloma Harrington-Griffin told the : "Katie Price’s house in Sussex would benefit from a combination of extreme and expensive as well as straight-forward and practical improvements.";
The extra time to thrash out an agreement over her finances would come as a huge relief to Katie, 40, who was once known for being the nation’s savviest businesswomen.
She raked in £6.2million from a string of reality shows in her 2000s heyday and £3.5million for an Asda lingerie collection.
She has also sold millions of books.
But the unlucky-in-love mother of five has dealt with three expensive divorces and the collapse of her company.
The Sun revealed the full extent of her financial woes earlier this year, telling how she blew her £45million fortune on luxury holidays, a £1million farm and plastic surgery.
It comes after Price was arrested earlier this month on suspicion of drink driving.
The former I'm A Celebrity... Get Me Out Of Here! star had allegedly been found in a damaged car in Woolwich, South London.
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It came after she revealed she had reported herself to police for violating a driving ban, handed to her in February after she was caught speeding.
Price, formerly known as Jordan, has tied the knot three times and has recently been in the headlines following the collapse of her most recent marriage to Kieran Hayler.
She has also recently revealed her mother Amy Price has been diagnosed with idiopathic pulmonary fibrosis - the same disease which killed Keith Chegwin.
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