Katie Price declared bankrupt at High Court

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The Official Receiver will take control of Price’s financial affairs and property

Katie Price has been declared bankrupt in a hearing at the High Court, which was told she had failed to stick to a plan to repay her debts.

The former model and reality TV star was not present at the London hearing.

Last year, Price, 41, came to an arrangement with her creditors for a repayment plan known as an Individual Voluntary Arrangement (IVA).

But the insolvency practitioner overseeing her IVA said she had failed to keep to the terms of the agreement.

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

Price, who lives in West Sussex, found fame in the 1990s as a glamour model under the name Jordan and was once said to be worth more than £40m.

She is now seen on the reality show My Crazy Life on the Quest Red channel and has a clothing range named after her daughters Princess and Bunny.

Last month, she was one of three celebrities who had Instagram posts advertising diet products banned by the Advertising Standards Authority.

What is bankruptcy?

Someone can file for bankruptcy as a way of escaping overwhelming debt. An Official Receiver takes charge of their finances and assets, such as their house, and may use them to pay off their debts.

The bankrupt person will be under certain restrictions, EG not being able to apply for credit of more than £500 without telling the lender about their bankruptcy. It usually ends after a year, after which most debts are written off and they can make a fresh start.

As well as voluntarily filing for bankruptcy, a person can be made bankrupt if they have not paid their debts.

An Individual Voluntary Agreement (IVA) – which freezes someone’s debts and allows them to pay them back over a set period – is one alternative to bankruptcy. But one route to being made bankrupt is if a person has broken the terms of their IVA, as the High Court heard that Price had done.

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