Katie Price has reportedly avoided going to jail for a second time in as many months in regards to her bankruptcy.
The My Crazy Life star was due to appear at London’s High Court on Monday for the latest hearing in her ongoing bankruptcy ordeal, with a judge expecting her to explain her attempts to pay off the £3.2 million debt she owes to creditors.
Katie, who was once worth £40m, was declared bankrupt in November 2019.
According to The Sun, Katie, 43, managed to strike a ‘last-minute’ agreement with the court that she would pay a ‘small contribution’ now to reduce her debt, as well as a new payment plan.
A source told the publication: ‘It was all very last minute but she wanted to avoid court. Katie does want to pay back the money but it’s been slow progress.’
It’s reported that Katie’s bankruptcy trustees were keen to find out how much she has been paid for recent work, including her Channel 4 series Mucky Mansion, which sees her completely renovate her Sussex home after it fell into serious disrepair.
Katie reportedly agreed to pay creditors £12,000 a month but allegedly failed to keep up with payments.
It’s said that Katie’s case will be reviewed in eight weeks time.
Last April, the former glamour model – who recently launched a subscription-based OnlyFans channel – said the bankruptcy was the ‘best thing’ to happen to her.
She told OK! Magazine: ‘I’ve been sucked dry in the past. I was mentally abused and broken by everyone. ‘It’s not like I have skeletons in my closet but everyone tried to get everything they could out of me. But now, I can go to sleep at night and I just think, “F**k it”.
‘My bankruptcy is the best thing that’s ever happened to me.’
Katie added: ‘Because anyone who has ever been in my life before has tried to take from me, financially mostly.
‘Now they can’t, as I’m in a bankruptcy. I love it.’
The mum-of-five also narrowly avoided going to jail in December following a drink-driving crash. Katie instead received a 16-week suspended sentence.
Metro.co.uk has reached out to Katie’s reps for comment.
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