Katie Price is set to lose everything apart from the ‘bare essentials’ and may even face criminal proceedings and jail time like Boris Becker.
If the former glamour-model, 45, was stripped of her assets she would lose her £2million ‘mucky mansion’ and the hundreds of thousands she made on OnlyFans.
Katie was declared bankrupt for the second time on Monday, after failing to pay a tax bill of more than £750,000.
The mother of five, who didn’t appear in court to argue her case, owes £142,405 and £196,735 owed for the tax years 2020-2021 and 2021-2022, plus £140,000 in VAT.
The reality personality has also been charged with late penalties and interest on top of this and has racked up debts of more than £3.2million.
Katie Price is set to lose everything apart from the ‘bare essentials’ and may even face criminal proceedings and jail time like Boris Becker
If the former glamour-model, 45, was stripped of her assets she would lose her £2million ‘mucky mansion’ (pictured) and the hundreds of thousands she made on OnlyFans .
It would also mean that the earnings she’s made in the years since she was declared bankrupt the first first time around in 2019 will also be taken from her, as it’s thought she makes an estimated £2.2million a year from her OnlyFans account.
A bankruptcy expert has told MailOnline it would take ‘exceptional circumstances’ for Katie to keep hold of her £2million home after failing to comply with the terms of both bankruptcies.
It would also mean that the earnings she’s made in the years since she was declared bankrupt the first first time around in 2019 will also be taken from her, as it’s thought she makes an estimated £2.2million a year from her OnlyFans account.
Katie will also have to cut back on her luxury holidays, after splashing out on a recent ski trip with her boyfriend and MAFS UK star JJ Slater.
The TV personality was visited by baliffs before Christmas who appeared to take a fleet of cars to recoup a £250,000 debt she owes her ex-husband.
However she will no doubt be forced to hand over the cars she has left, which includes a Range Rover, to settle her debts.
Katie could also be looking at criminal proceedings similar to tennis ace Becker, who was declared bankrupt and found to be hiding assets worth £2.5M.
Our bankruptcy expert revealed: ‘She should lose all her assets above those necessary for reasonable domestic needs. Nobody has domestic needs to live in ‘mucky mansion’.
‘If someone is driving around in a Porsche then the Trustee should seize it and either give them a Nissan Micra or tell them to take the bus or tube.
‘She is entitled to work and keep her ‘tools of trade’ – so any of her expensive implants would be tricky to seize!
‘What is unusual is being made bankrupt a second time in reasonably short succession, that is, within five years. It does happen but most bankrupts avoid it.
‘They can take her rights to earnings developed since the first bankruptcy. If she published a book, that means the royalties, the OnlyFans income streams arising after the first bankruptcy if not already claimed by the first Trustee should by rights fall within a new Income Payments Arrangement.
She will no doubt be forced to hand over the cars she has left, which includes a Range Rover, to settle her debts
Katie was declared bankrupt for the second time on Monday, after failing to pay a tax bill of more than £750,000
Katie also has some expensive hobbies including owning horses
‘Any new assets since the first bankruptcy will fall now into the second bankruptcy up to the date of the bankruptcy order.
‘As for criminal proceedings, it is possible in view of her status. You will recall what happened to Boris Becker. Jonathan Aitken lost his watch [a Rolex].
‘Most people with this wealth would get decent solicitors and keep themselves out of jail and argue the law with finesse. That is what arguably lawyers are for when protecting wealthy clients perhaps. She seems to have not done this from what I can gather.
‘She failed to comply with her Income Payments Agreement in the first bankruptcy and obviously has not properly cooperated. Not turning up to court hearings – or sending a lawyer/barrister to represent you – is non-cooperation.’
Remarkably, after the hearing, Katie posted a video of a pink Porsche GT3RS worth £194,000 onto her Instagram.
Expert Licensed Insolvency Practitioner, Elliot Green of Oliver Elliot Chartered Accountants, adds that Katie should be aware that losing her house is a serious threat.
‘Second bankruptcies in five years whilst not the norm can of course happen. A new Trustee will typically oversee a bankrupt’s financial affairs with a view to obtaining any assets which may fall into the second bankruptcy estate,’ he says.
Katie pictured hours after hearing the news about her bankruptcy hearing on Monday
Katie was speaking to Straight to the Comments! when the news broke, which embraces the hilarity and uniqueness of the MailOnline comment section with the celebs in question, with her episode to air next week
‘Trustees have a duty to realise the assets of the bankruptcy for the benefit of creditors. A bankrupt has a corresponding duty to come clean to the Trustee about their assets.
‘If the first bankruptcy resolved her interest in the property reportedly known as ‘mucky mansion’ but she obtained a beneficial interest in it, then it could potentially yet again be an asset that needs to be sorted out.’
A judge at the High Court ruled that she be declared bankrupt after an official from HMRC said she has failed to pay any money owed or responded to any correspondence since the demand was made for the unpaid tax last year.
Katie was speaking to the Mail’s podcast Straight to the Comments! when the news broke, which embraces the hilarity and uniqueness of the MailOnline comment section with the celebs in question, with her episode to air next week.
When told there was a new story about her, Katie gasped in shock and said: ‘Has it? Oh get lost! Are you actually serious, while I’m sat here? What have I done now?’
After hearing that she had been declared bankrupt a second time, she said she had been signed off because of ‘serious stuff’ in her life.
She said: ‘I know I had court last week or the week before. Because of what’s going on in my life, I’ve actually been signed off because I’m dealing with serious stuff.’
Katie went on to claim that she ‘doesn’t get away’ with not paying, insisting that she is making payments.
She said: ‘There’s all different kinds of bankruptcy, I think they just use the word bankruptcy. No one actually 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.’
It is the second bankruptcy faced by Katie as she is being chased by creditors for a £3.2million payment over the failure of her company Jordan Trading Ltd.
Judge Sebastion Prentis sitting at the High Court Rolls Building said Katie had been served with a petition on November 27 2023 with a demand for £761,994.05.
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