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Katie Price insists she pays taxes after being declared bankrupt for second time over £750,000 unpaid bill
Price has broken her silence over her battle with HMRC
KATIE Price has insisted she pays taxes after being declared bankrupt for a second time over a £750,000 unpaid bill.
The former glamour model skipped a hearing where a judge revealed she had failed to respond to HMRC over the huge debt.
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Price, 45, was instead booked in for a podcast - finding out that she had been declared bankrupt live on air.
Judge Sebastian Prentis made a bankruptcy order in Price's absence over the unpaid £761,994 tax bill.
She did not even send a lawyer to the hearing, which is the latest in a long string of financial woes.
Price now faces losing her £2million Sussex pad, dubbed Mucky Mansion.
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She gave a heartfelt reaction to the news on the Straight to the Comments podcast.
Price said: "I know I had court, last week or the week before.
"But because of what’s going on in my life, I’ve actually been signed off.
"I’m dealing with serious stuff. You know, there’s all different kinds of bankruptcies - I think they just use the word bankruptcy.
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"But nobody knows the ins and outs of everything - and trust me, I don’t get away with stuff either, like you can’t.
"Tax you can’t ever run away from, you have to pay. Don’t think I sit here and don’t pay stuff, because I do."
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Judge Prentis said: "There has been no response from the debtor. The papers are in order.
"There is substantial debt due from Ms Price to HMRC and therefore I will make a bankruptcy order."
Last month the High Court heard that Price had agreed to make 36 payments of £12,500 plus a lump sum to settle the debt.
But Price failed to make the payments, with the court ruling that money be taken straight from her income instead.
Four firms including OnlyFans and a paparazzi agency must now deduct two-fifths of all money paid to Price for the next three years.
Price was previously declared bankrupt in November 2019, with debts of £3.2million.
Why is Katie Price bankrupt?
Reality star Katie Price has been declared bankrupt for the second time after failing to pay a huge tax bill.
What is bankruptcy?
Bankruptcy is a legal status whereby debts cannot be repaid.
In the UK being bankrupt is limited to applying to individuals but in the US and some other countries, it can be applied to companies as well.
The word itself is derived from the Italian phrase banca rotta meaning "broken bank".
In the modern world, it normally involves a restructuring of debts in an attempt to rehabilitate those who owe the money and sometimes continue with their business.
In most jurisdictions, people or companies are declared bankrupt by a court order.
Is it the same as insolvency?
Bankruptcy is just one type of insolvency in the UK.
There are two legal definitions of insolvency in the UK with one being where a business or individual’s liabilities (what you owe) exceed your assets (what you own), or, where you are unable to pay your debts as they fall due.
Additionally, there are several different types of insolvency, only one of which is bankruptcy, these include:
- liquidation (applies to a limited company or partnership)
- administration (applies to a limited company or partnership)
- company voluntary arrangement (applies to limited companies)
- partnership voluntary arrangement (partnerships)
- individual voluntary arrangement (individuals who can also be made bankrupt)
- debt relief order (where an individual owes less than £15,000)