Katie Price claims she’s been ‘signed off court appearances’ because of ‘bad personal problems’ amid second bankruptcy
KATIE Price has been declared bankrupt for the second time - but says she doesn't have to attend court because of personal issues.
The glamour model, 45, was not there last week when her unpaid tax bill of £750,000 was addressed in court.
Katie is now at risk of losing her £2million home.
She said revealed: "I know I had court, I think it was last week or the week before.
"Because of what’s going on in my life, I’ve actually been signed off because I’m dealing with serious stuff.
"There’s all different kinds of bankruptcy, I think they just use the word ‘bankruptcy’.
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"No one actually knows the ins and outs of everything.
"And trust me, I don’t get away with stuff either.
"Like, you can’t, like tax, you can’t ever run away from, you have to pay. Don’t think I sit and don’t pay stuff, because I do.”
She went on to say: "But I think the media like to play on the fact 'oh she hasn't turned up to court' but they don't know what goes on behind the scenes, what I deal with, what you agree to pay and what you don't behind the scenes.
Katie went on to explain about paying back her debts: "If I don't work, then they can't get paid.
"If they mentally drain me, because only I can work, and if I don't work, they don't get money.
"And because of what's going on in my life behind the scenes, I have to mentally be there."
The mum was previously declared bankrupt in 2019 with debts amounting to £3.2 million.
Katie now faces the potential loss of her £2 million Sussex property, known as the Mucky Mansion, or the risk of bailiffs taking assets to repay her £761,194.05 debt to HMRC.
Her latest hearing was conducted at the Rolls Building in London and Court Judge Sebastian Prentis said Katie had not responded to HMRC over the debt and declared her bankrupt.
He said: "There has been no response from the debtor. The papers are in order.
"There is substantial debt due from Ms Price to HMRC and therefore I will make a bankruptcy order."
Why is Katie Price bankrupt?
Reality star Katie Price was declared bankrupt in November 2019 and blew her £45million fortune.
What is bankruptcy?
Bankruptcy is a legal status whereby debts cannot be repaid.
In the UK being bankrupt is limited to applying to individuals but in the US and some other countries, it can be applied to companies as well.
The word itself is derived from the Italian phrase banca rotta meaning "broken bank".
In the modern world, it normally involves a restructuring of debts in an attempt to rehabilitate those who owe the money and sometimes continue with their business.
In most jurisdictions, people or companies are declared bankrupt by a court order.
Is it the same as insolvency?
Bankruptcy is just one type of insolvency in the UK.
There are two legal definitions of insolvency in the UK with one being where a business or individual’s liabilities (what you owe) exceed your assets (what you own), or, where you are unable to pay your debts as they fall due.
Additionally, there are several different types of insolvency, only one of which is bankruptcy, these include:
- liquidation (applies to a limited company or partnership)
- administration (applies to a limited company or partnership)
- company voluntary arrangement (applies to limited companies)
- partnership voluntary arrangement (partnerships)
- individual voluntary arrangement (individuals who can also be made bankrupt)
- debt relief order (where an individual owes less than £15,000)
