Former Glamour Model, Katie Price Declared Bankrupt For The Second Time

Katie Price, a former beauty model, was declared bankrupt a second time due to an outstanding tax debt of £750,000.

Price owes HM Revenue and Customs £761,994.05 and was previously declared bankrupt in 2019.

The model, whose debts totalled £3.2 million when she was previously declared bankrupt in November 2019, did not bring an attorney to her most recent hearing, the most recent in a lengthy series of events related to her financial difficulties.

She may now have to give up her £2 million Sussex mansion, known as Mucky Mansion, or risk having bailiffs come to take anything that might be used to reimburse the government agency.

The former model now owes about £10,000 in VAT surcharges in addition to over £140,000 in unpaid VAT. The claim of £761,994 is believed to be for a “liquidated sum,” implying that she could have to sell a property or other assets to free up equity.

The judge said; “This petition was presented on 27 November 2023. It is in the sum of £761,194.05. That sum derives from self-assessments for the years 2020-2021.

“And for the year 2021-2022, the amounts payable under those assessments were £142,405 and £196,735. The other main category on the petition is VAT due on returns. There are eight of those, being the returns between 31 August 2021 and 31 May 2023.

“The total of those is a little in excess of £140,000. Just as with the income tax self-assessments, no payments at all have been made.

“The balance of the petition is therefore penalties and surcharges and interests and such like. The statutory demand in support of the petition was served personally on the 10th of October.

“On 31 January 2024, there has been no response from the debtor and the papers are in order. There is a substantial debt due from Mrs Price to HMRC and I will therefore make a bankruptcy order at 12.03 pm.”

Next month, the Channel 4 reality star is scheduled to testify before a London bankruptcy court on her initial bankruptcy. In order to demonstrate her ability to pay off her debts, she is expected to testify before a judge regarding her income.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli