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Katie Price: Bankruptcy-Free After £750K Tax Dream Crash

BBG News

Yesterday evening, Katie Price was released from her second bankruptcy proceedings – signifying the conclusion of her prolonged financial hardship.

It comes after a £750,000 unpaid tax bill landed the 46-year-old model in hot water last year.

Ms Price was discharged from her first bankruptcy on February 11, 2025.

Her tax obligation encompassed income tax, sales tax, penalties, and accumulated interest, resulting from personal assessments over a period of two years ending in 2022.

Ms. Price expressed gratitude to her supporters and shared with The Sun, “Now I am able to progress and leave my past bankruptcies in the past, focusing solely on the uplifting aspects of life.

The source mentioned that despite the hardships the star experienced, she is now planning to regroup and rebuild her fortune that was previously lost.

Due to severe financial difficulties, Ms Price had no choice but to sell her ‘Mucky Mansion,’ valued at £2 million, for significantly less than its worth, in an attempt to regain financial stability.

In England and Wales, bankruptcy usually ends after a year. However, for Price, the immediate release from her first bankruptcy was put on hold, which means she is still obligated to abide by its conditions.

Nonetheless, the suspension was terminated on February 11, as decided by Judge Sebastian Prentis from the Insolvency and Companies Court.

Lawyer Darragh Connell, speaking on behalf of the trustee for Price’s bankruptcies, stated that the formal closing of the initial bankruptcy examination can take place openly in a court setting.

The recent news continues a protracted financial struggle for the ex-beauty queen, a battle that has previously led to her receiving an eviction notice from what is now known as the ‘Mucky Mansion’.

In the year 2014, she acquired the property from the ex-Conservative peer, Lord Francis Maude. Later on, this property was showcased in a Channel Four series during her endeavor to refurbish the house.

However, since failing to keep up with mortgage payments back in May the previous year, Ms. Price had to vacate her dilapidated nine-bedroom residence, ultimately having no choice but to put it up for sale.

Initially priced at £1.5 million, it eventually got sold for just over a million pounds (£1.15 million), as a new owner acquired the grand estate.

Ms. Price didn’t make a single cent from the sale because the money was absorbed by the outstanding debts she had accrued regarding the Sussex property.

She has since moved into a new four-bed property in Sussex.

Due to her first bankruptcy filed in November 2019, it was mandated that Ms. Price should contribute 40% of her monthly earnings from the platform OnlyFans until February 2027, with the purpose of repaying her outstanding debts.

In March, she was legally declared bankrupt for the second time. During this period, she is obligated to send funds from her OnlyFans account to the trustee until the second bankruptcy proceedings are concluded.

Previously scheduled for a public hearing on her finances in August the previous year, Ms. Price had to postpone the event to accommodate a private financial interview instead.

The judge instructed her firmly to appear at the upcoming August hearing without any exceptions or conditions, as a warrant had been issued for her arrest in July due to her absence at a previous court session.

On February 11, it was revealed in court that a private interview occurred on September 24, which supplied ample information to prevent a public investigation into her initial bankruptcy case.

A public examination related to the second bankruptcy was adjourned until April 8.

In relation to the second bankruptcy, the trustee believes they have been investigating further based on details given by Ms. Price, by reaching out to other parties for more information.

‘The outcome of those inquiries is not yet known.’

He added: ‘There could potentially be a request to temporarily halt the release of charges, but that matter isn’t up for discussion in court today.’

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2025-03-19 01:04

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