Katie Price declared bankrupt

The former model and TV star was declared bankrupt in a hearing at the High Court, which was told she had failed to repay her debts

Katie Price avoided bankruptcy in December last year after agreeing a plan to pay back what she owed, but in the hearing on Tuesday a judge declared her bankrupt after failing to follow through with the payment plan.

Formerly known as Jordan, the 41-year-old was once said to be worth approximately £40m.

In October last year, Price was able to negotiate a deal with HMRC over her finances, and her Individual Voluntary arrangement (IVA) proposal was accepted on 30 November.

IVA is a formal agreement between the taxpayer and their creditors that can help them to repay the debts at an affordable amount, IVAs are legally binding agreements.

Now that she has been made bankrupt, the Official Receiver will take control of her financial affairs and property.

During her career, Price has worked as an author, adult model, media personality, singer, film producer, fashion model, businessperson and songwriter. Currently Price stars in her own reality TV show called My Crazy Life on the Quest Red channel, and also has a clothing range named after her daughters Princess and Bunny.

Bankruptcy is one way for individuals to deal with debts they cannot pay, but it does not apply to companies or partnerships.

The bankruptcy process ensures the individual's assets are shared among creditors the taxpayer owes money to, letting them make a fresh start free from debt (with some restrictions).

The taxpayer will be discharged from bankruptcy after 12 months, which ends the bankruptcy restrictions and releases the individual from most of the debts they had when the bankruptcy order was made.

The Insolvency Service Guide to bankruptcy 

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