Katie Price AVOIDS being declared bankrupt in court

Katie Price avoided being declared bankrupt in court on Tuesday after she was given three months to come up with a plan to pay off her debts, totalling more than £250k, including more than £20k in tax debt.

The 40-year-old was not present at the High Court Roll's building in London as her team submitted proposals for an individual voluntary agreement (IVA).

It was previously reported that the hearing could see her formally declared insolvent, even though she who was once estimated to be worth £45million. 

An IVA sees creditors paid back over an agreed period of time and her application will be heard in 12 weeks on October 30.  

Katie has been bidding for months to stave off bankruptcy as her once-lucrative media empire began to fall apart following the demise of her third marriage and the collapse of her businesses.

She is said to already be trying to sell her £2million West Sussex mansion which she bought in 2014, as she faces a High Court hearing that could see her formally declared insolvent.

She is also selling her beloved farmyard animals as her home is said to have fallen into disrepair, with the swimming pool and tennis courts abandoned.

Katie, whose reality show My Crazy Life is currently airing on Freeview channel, Quest, has spent millions on plastic surgery, luxury holidays, house renovations, a hefty mortgage and staff. 

Her representatives now have 12 weeks to come up with a plan to sort out her finances or she could face bankruptcy.

The hearing, which lasted less than 30 seconds and which she did not attend in person, relates to tax owed to HMRC.

A representative of HMRC said: 'The debtors insolvency practitioners made contact with HMRC and is considering submitting an IVA proposal and HMRC is not contesting it.'

A debtors insolvency practitioner manages the affairs of an insolvent individually, partnership or company.





MailOnline