Former glamour model Katie Price, 45, was declared bankrupt for a second time over an unpaid tax bill worth more than £750,000. Despite this, Katie insisted that no one can take her “Mucky Mansion” away from her. The bankruptcy order was made after Katie failed to respond to HMRC regarding the debt of £761,994.05. She mentioned during an event that she is not ashamed of the bankruptcy and went through a tough period that led her to have a breakdown. She highlighted her journey of growth and overcoming challenges, expressing that she is just at the beginning again and ready to grow.
The bankruptcy expert stated that it would be challenging for Katie to keep her £2 million mansion and that her earnings over the past five years since her last bankruptcy in 2019 could be stripped from her. Despite Katie’s claim that no one can take her house, the expert suggested that she could risk losing everything she owns. Katie also mentioned the importance of therapy and communication during tough times, emphasizing the need to face challenges, establish payment plans, and not be ashamed of seeking help. Although bankruptcy can be a difficult situation, Katie seemed determined to overcome it and start anew.
The bankruptcy order stemmed from self-assessments for the years 2020-2021 and 2021-2022, including income tax, VAT, surcharges, and interest. Katie admitted to experiencing a breakdown and feeling unable to cope, leading to a period of hiding away and not responding to letters, which worsened the situation. However, she sought therapy, emerged from the difficult phase, and realized the importance of communication and facing financial challenges head-on. Katie acknowledged the need to establish payment plans and not be embarrassed about seeking help during challenging times. She expressed a positive outlook on growth and starting anew despite facing bankruptcy.
Katie’s bankruptcy raised concerns about her ability to retain her assets, including her mansion, as the debt owed to HMRC is significant. The bankruptcy expert highlighted the potential risk of losing all her possessions, including earnings over the past five years. Despite Katie’s claim that her house cannot be taken away, the legal implications of bankruptcy could pose challenges to her retaining ownership of her mansion and other assets. The expert noted that Katie’s financial situation may require careful management, payment plans, and potential asset liquidation to settle the outstanding debts.
The bankruptcy order was made by Insolvency and Companies Court Judge Sebastian Prentis after Katie failed to respond to HMRC regarding her tax debt. The judge affirmed the substantial debt owed by Katie and issued the bankruptcy order based on the unpaid taxes from the specified years. Katie’s bankruptcy declaration for the second time in six years highlighted the complexity of managing financial obligations and the implications of failing to address tax liabilities. The legal proceedings underscored the importance of addressing debts promptly, seeking financial assistance when needed, and considering the long-term financial consequences of unpaid taxes.
Katie’s declaration of bankruptcy sparked conversations about financial management, debt resolution, and the challenges faced by individuals in managing their finances. Her openness about her bankruptcy, therapy experience, and growth journey shed light on the importance of seeking help during financial crises and overcoming challenges with determination and resilience. The bankruptcy expert’s analysis provided insights into the potential consequences of bankruptcy, including asset loss and financial planning implications. Katie’s situation serves as a cautionary tale about the importance of addressing financial responsibilities, seeking assistance during tough times, and planning for a stable financial future.
