Katie Price ‘owes £3.2 MILLION to creditors because she’s failed to pay off her debts – two years after being declared bankrupt’
Katie Price reportedly owes more £3.2 million to her creditors after accountants submitted a report raising concerns about her financial conduct.
The former glamour model, 42, allegedly owes the vast sum from her company Jordan Trading Ltd, despite being declared bankrupt in 2019 and vowing to pay back £12,000 a month through an individual voluntary arrangement.
It’s thought that the liquidators say Katie’s ‘non-compliance’ means they’re unable to discharge her and claim a loan of £154,423, to help clear claims by creditors totalling £267,769.
Money woes: Katie Price, 42, reportedly owes more £3.2 million to her creditors after accountants submitted a report raising concerns about her financial conduct
According to The Sun, a report published by the liquidating company Moorfields said: ‘I have been in correspondence with the Director’s Trustee in Bankruptcy to establish whether there maybe any future dividends pad to the Director’s creditors.
‘The Director has failed on multiple occasions to attend on the Trustee and the Director has subsequently had their discharge suspended due to non-cooperation.
‘We have been advised that creditors in the bankruptcy estate now total approximately £3.265 million.’
Drama: The former glamour model allegedly owes the vast sum from her company Jordan Trading Ltd, despite being declared bankrupt in 2019 and vowing to pay back £12,000 a month
A representative for Katie told MailOnline: ‘Katie continues to work closely with her trustees & creditors to resolve the terms of her bankruptcy.
‘She remains committed to delivering a positive outcome for all involved.’
According to documents, which were filed under Companies House, Katie is still listed as a director on the organisation,after her brother Daniel Infield resigned as secretary in 2015.
Jordan Trading Ltd was set up by Katie in 2003 to oversee the star’s perfume and makeup lines, but in 2017 an application was put in to wind up the company as Katie tried to sort out her finances.
Where’s the money? It’s thought that the liquidators say Katie’s ‘non-compliance’ means they’re unable to discharge her and claim a loan of £154,423 which is unlikely to be paid back
The reality star, who was once worth more than £45 million, was declared bankrupt in 2019 after the High Court found she had failed to stick to a plan to repay her debts, estimated to be £800,000.
She was forced to give up her £2 million 11-bedroom mansion a month later after signing the property over to a trustee.
Katie took out a second mortgage on the property in 2015, but faced monthly payments of £12,300, and is now thought to be £100,000 in arrears.
The Price is right! In February a cash-strapped Katie also revealed she was selling some of her furniture on Depop including her boyfriend Carl Woods’ old dining set for up to £1,500
Following years of incomplete renovations, the house was nicknamed the ‘mucky mansion’ with Katie even showcasing the extent of the mess on her reality series My Crazy Life.
In February a cash-strapped Katie also revealed she was selling some of her furniture on Depop including her boyfriend Carl Woods’ old dining set for up to £1,500.
It also comes following reports that Katie was ‘unaware’ that her rented six-bedroom Surrey home was on the market after it recently sold for £1.2 million.
Gone: The mother-of-five was forced to give up her £2million 11-bedroom mansion (pictured) a month after being declared bankrupt in 2019
A source has claimed the TV personality is preparing to move into her third place in a year after deciding to live between her beau Carl’s pad and the £4,250-per-month abode when she left her infamous ‘mucky mansion’ behind.
The insider said: ‘It’s a real blow as she’ll have to move again. Katie had no idea the house was being sold but now she’ll have to move very soon.’
They added to The Sun: ‘She’s living with Carl most of the time but still has a lot of stuff at the Surrey house and stays there occasionally because it’s close to Pete’s house and has space for all of the kids and they all have their rooms there.’
Her representative confirmed: ‘This information had not yet been relayed and came as a surprise to Katie, who is still renting the property.’
The publication reports the lavish house sold for the eye-watering £1.2 million on the condition it remains tenanted.
Mother-of-five Katie hopes to purchase a property with her toyboy Carl, whom she has been dating since June 2020.
New life: Mother-of-five Katie hopes to purchase a property with her toyboy Carl Woods, whom she has been dating since June 2020
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