Katie Price dodges jail again after last-ditch deal to pay off bankruptcy debts

14 February 2022, 13:56

Katie Price has dodged jail for the second time in weeks after striking a last-minute deal to pay off her debts.

The reality star, 43, who was due in the High Court over her bankruptcy, has paid off a small amount of the money she owed and handed over a new payment plan. 

She had been scheduled to explain to a judge how she was paying back her £2.3million debt after being declared bankrupt in 2019.

But the former model - who narrowly avoided jail after pleading guilty to drink-driving last December - has had her bankruptcy hearing postponed for a second time after agreeing an eleventh-hour deal to pay back the money.

The mum-of-five could potentially have been sent to prison for contempt of court under the Insolvency (Amendment) Rules 2010 if she failed to appear without notifying the judge.

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A source told The Sun: “It was all very last minute but she wanted to avoid court. Katie does want to pay back the money but it’s been slow progress.”

Katie was declared bankrupt in 2019 and owes £3.2m to creditors including HMRC, her mortgage company and small businesses. 

Following a court hearing in December 2020, she had agreed a plan to pay £12,000-a-month through an individual voluntary arrangement but failed to do so.

And last year she was hit with a repossession order on her West Sussex mansion after failing to pay a £500,000 debt.

For her Mucky Mansion series on Channel 4, Katie was paid £45,000 and also sells her own bath bomb, make-up and equestrian lines. 

Earlier today an email went out to Katie’s creditors saying: “The hearing has been adjourned to the next open date after 8 weeks by consent and vacated from the Court’s list today.

”The email added that Katie had made “payments into the estate, made several new significant concessions, agreed increased co-operation and consented to continued suspension of discharge”. 

The case will be reviewed in eight weeks when the court will hear if Katie has kept up with her repayments.

In December, the ex-glamour model, who once had a fortune of £45million, was given a 16-month prison sentence suspended for a year after pleading guilty to drink driving.

Magistrates said they were unable to send her to prison as she had completed a stay at The Priory having agreed to attend the rehab centre on her first court appearance.

Katie had flipped her BMW X5 while driving to see a friend near her Sussex home. It was her ninth driving offence.

The threat of prison still hangs over her as last month she breached a restraining order taken out against her by her ex-husband Kieran Hayler's fiancée.

Katie sent a series of vile texts to Michelle Penticost in breach of a restraining order and could face up to five years in prison if she is charged and found guilty.