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Bristol Post
Bristol Post
Entertainment
Emmeline Saunders & Jasper King

Katie Price declared bankrupt a month before Christmas

Kate Price has been declared bankrupt after failing to pay back thousands of pounds in debt.

The mum of five now risks losing her mansion after being told she's no longer solvent.

She was unable to meet her creditors' demands and couldn't pay a six-figure amount in time, Mirror Online reports.

The bankruptcy comes after she last year submitted a payment plan in the form of an Individual Voluntary Agreement to manage repayments of an estimated £250,000 of debt.

The case was heard at the Insolvency and Companies Court in London's Rolls Building, under Katie's real name Katrina Amy Alexandra Alexis Price.

She avoided bankruptcy in December last year after agreeing a plan to pay back what she owes.

Judge Jonathan Middleton said: "I do judge Ms Price to be bankrupt."

This comes after the star was once said to be worth £45 million.

At a hearing in October last year, she was given time to negotiate a deal with the taxman over her finances and her proposal for an Individual Voluntary Agreement (IVA) was accepted on November 30.

An IVA is an agreement which lets people with debt repay their creditors at an affordable rate in an attempt to avoid bankruptcy.

However, the renewed bankruptcy proceedings were brought after she failed to meet the terms of the agreement.

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