Model and TV star Katie Price has been declared bankrupt at a court in London.
The 41-year-old star could now lose her home. 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, reports The Mirror .
The reality TV star formerly known as Jordan was unable to meet her creditors' demands and couldn't pay back the six-figure amount in time.
The case was heard at the Insolvency and Companies Court in London's Rolls Building, under the former Page Three girl's real name Katrina Amy Alexandra Alexis Price.
The former glamour model avoided bankruptcy in December last year after agreeing a plan to pay back what she owes.
Judge Jonathan Middleton, sitting at a specialist insolvency and companies court, said: "I do judge Ms Price to be bankrupt."
The star was once said to be worth more than £40 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 a formal agreement which lets people with debt repay their creditors at an affordable rate in a bid to avoid bankruptcy.
However, the renewed bankruptcy proceedings were brought after she failed to meet the terms of the agreement.
