Katie Price Declared Bankrupt for Second Time Over £750,000 Tax Bill

Katie Price, the former glamour model, has been declared bankrupt for the second time over an unpaid tax bill worth more than £750,000. This declaration comes after she was previously declared bankrupt in 2019. The debt, amounting to £761,994.05, is owed to HM Revenue and Customs (HMRC).

The court proceedings took place at London’s Rolls Building, where Insolvency and Companies Court Judge Sebastian Prentis declared Price bankrupt due to her failure to respond to HMRC regarding the debt. The debt includes income tax, VAT, surcharges, and interest, stemming from self-assessments from the years 2020-2021 and 2021-22.

Katie Price Declared Bankrupt for Second Time Over £750,000 Tax Bill
Katie Price Declared Bankrupt for Second Time Over £750,000 Tax Bill

Price did not attend the hearing, which occurred days after she was fined £880 for driving without a license or insurance in Northamptonshire in August of the previous year. Additionally, in February, she was ordered by a different High Court judge to pay 40% of her income from the adult entertainment website OnlyFans to trustees for the next three years in a separate dispute over unpaid debts. Price has expressed her frustration with the legal threats and has even considered going to prison as a means to end the legal battles.

In March 2023, Price appeared on Jeremy Vine’s Channel 5 show, where she discussed her bankruptcy and expressed that people should not feel ashamed of being declared bankrupt. She also mentioned her struggles with mental health. During a hearing in October 2020, Price apologized to the court, stating that she had not been able to deal with the issues or was in the right mental state to understand everything that was happening.

The bankruptcy petition was issued by HMRC in October 2023. Price’s legal issues have been mounting, with her facing multiple court hearings and fines. In a recent hearing, barrister Darragh Connell, representing the trustees, informed the court that Price had reached a voluntary agreement over the debts, which included 36 payments of £12,500, plus a lump sum. The High Court ruled that Price would lose a portion of her monthly earnings, with trustees going to court to ask for an income payment order, meaning money from her earnings would be taken towards her debt.

Katie Price declared bankrupt for second time over unpaid tax bill ...
Katie Price declared bankrupt for second time over unpaid tax bill …

Price’s legal troubles have also included a chaotic virtual bankruptcy hearing on Microsoft Teams, where she accused people of taking screenshots and recordings, expressing her fear and anxiety about the situation. The judge concluded that recording or screenshotting proceedings was contempt of court and held the hearing in private, with only the relevant parties and their lawyers present.

This situation highlights the ongoing financial and legal challenges faced by Katie Price, who has been dealing with unpaid taxes, legal fees, and mounting debts. Her bankruptcy and the associated legal proceedings have been a significant part of her public life, reflecting broader issues of financial management and mental health among celebrities.

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