Katie Price faced more financial woes as she was told to pay almost half her earnings to creditors after being declared bankrupt for a second time last year
Katie Price is set to lose almost half of her monthly income from multiple companies to pay off creditors after a judge said she must reduce her “extravagant pattern of expenditure”.
The former glamour model was first declared bankrupt in 2019 and again last year. Both bankruptcies have since been discharged, but she remains the subject of a court order known as an income payments order (IPO) – meaning she must pay 40 per cent of her monthly income from several companies to the trustee of her bankruptcies until February 2027.
On Thursday, barristers for the trustee asked a specialist bankruptcy court to make a second IPO, which would see a further 10 companies pay 40% of Ms Price’s monthly income to the trustee for three years. The companies include media and entertainment firms, and the partnership which acts as Ms Price’s agent.
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Neither Ms Price nor any of the 10 companies were in attendance or represented at the hearing. But Deputy Insolvency and Companies Court Judge Stephen Baister said Ms Price had “every opportunity to appear and to make representations”.
Making the second IPO, he said: “The bankrupt’s expenditure seems to have exceeded her income, but that is only because she has adopted an extravagant pattern of expenditure, that of course she is now going to have to trim somewhat.”
He continued: “I will make the order for the reasons that the trustee of the bankruptcies seeks.”
The judge said that Ms Price now works as an influencer and has “enjoyed a considerable amount of success”, earning income “that by any standard would be regarded as significant”.
He also said that “very substantial sums remain that provide ample headroom” for Ms Price, despite the second IPO being made.
Rowena Page, for the trustee, told the court in written submissions that under the terms of the first IPO, Ms Price had to pay a lump sum of £25,000 and 34 monthly payments of £12,500 to the trustee.
But she continued that Ms Price had “failed to make the lump-sum payment due” and had “failed to discharge any of the monthly instalments she was ordered to make”.
Ms Page also said that more than £124,000 had been paid to the trustee by the companies covered by the first IPO. She added that the second IPO “should be granted for the benefit of Ms Price’s creditors”.
She said: “It is apparent that Ms Price earns sums significantly in excess of the sums required to meet her and her family’s reasonable domestic needs.”
After her first bankruptcy in November 2019, Ms Price was made bankrupt again in March 2024 over an unpaid tax bill worth more than £750,000.
The first IPO was made in February last year and covered Ms Price’s monthly income from four companies, including the adult entertainment website OnlyFans, with more added at a hearing in July last year. At that hearing, a judge also issued a warrant for Ms Price’s arrest after she failed to attend.
She was due to attend a public examination in August last year to face questions over her finances, but this was adjourned so she could attend a “private interview”. Both bankruptcies were then discharged earlier this year, but the IPOs remain in force as they were applied for before the bankruptcies ended.
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Source: Mirror
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