By Sheila Mckenzie-
Katie Price was today declared bankrupt after failing to pay back spiralling debts.
The 41-year-old was supposed to be paying off £12,000 a month to her creditors after taking out an individual voluntary arrangement (IVA) 12 months ago – but has failed to do so.
he 41-year-old, formerly known as Jordan, was once said to be worth more than £40 million. Once worth over £40m,her bankruptcy was confirmed after she failed to negotiate a deal with the taxman over her finances. Her proposal for an Individual Voluntary Agreement (IVA) was accepted on November 30.
Under an IVA , people in debt are formally allowed to repay their creditors at an affordable rate in order to avoid bankruptcy. However, the renewed bankruptcy proceedings were brought after she failed to meet the terms of the agreement. At a hearing in London on Tuesday, a judge declared her bankrupt.
Judge Jonathan Middleton, sitting at a specialist insolvency and companies court, said: “I do judge Ms Price to be bankrupt.” Price now faces losing her £2 million “mucky mansion” in Dial Post, West Sussex and having her assets taken and sold to pay her debts.
Image: PA