Katie Price faces losing almost half her monthly income to settle debts - as judge orders her to slash 'extravagant' spending
Katie Price is set to lose almost half of her monthly income to pay off her debts as a judge said she must reduce her 'extravagant' spending habits.
The former glamour model, 47, was first declared bankrupt in 2019 and again last year.
Her financial woes were so severe she owed the taxman £750,000 and had to sell her £2 million 'Mucky Mansion'.
Both bankruptcies have since been discharged, but she remains the subject of a court order known as an income payments order (IPO).
This means she must pay 40 per cent of her monthly income from several companies, including adult content site OnlyFans, to the trustee of her bankruptcies until February 2027.
On Thursday, barristers for the trustee asked a specialist bankruptcy court to make a second IPO, which would see a further 10 companies pay 40 per cent of Ms Price's monthly income to the trustee for three years.
The companies include media and entertainment firms, and the partnership which acts as Ms Price's agent.
Neither Ms Price nor any of the 10 companies were in attendance or represented at the hearing, but Deputy Insolvency and Companies Court Judge Stephen Baister said Ms Price had 'every opportunity to appear and to make representations'.
Katie Price is set to lose almost half of her monthly income to pay off her debts as a judge said she must reduce her 'extravagant' spending habits
Price was seen for the first time this week with her new dog - despite frequent calls from animal charities to ban the star from owning pets
Making the second IPO, he said: 'The bankrupt's expenditure seems to have exceeded her income, but that is only because she has adopted an extravagant pattern of expenditure, that of course she is now going to have to trim somewhat.'
He continued: 'I will make the order for the reasons that the trustee of the bankruptcies seeks.'
The judge said that Ms Price now works as an influencer and has 'enjoyed a considerable amount of success', earning income 'that by any standard would be regarded as significant'.
He also said that 'very substantial sums remain that provide ample headroom' for Ms Price, despite the second IPO being made.
Rowena Page, for the trustee, told the court in written submissions that under the terms of the first IPO, Ms Price had to pay a lump sum of £25,000 and 34 monthly payments of £12,500 to the trustee.
But she continued that Ms Price had 'failed to make the lump-sum payment due' and had 'failed to discharge any of the monthly instalments she was ordered to make'.
Ms Page also said that more than £124,000 had been paid to the trustee by the companies covered by the first IPO.
She added that the second IPO 'should be granted for the benefit of Ms Price's creditors'.
Her financial woes were so severe she owed the taxman £750,000 and had to sell her £2 million 'Mucky Mansion' (pictured)
Price's home was so infamous it became the subject of a documentary chronicling her attempts to overhaul the mess
She said: 'It is apparent that Ms Price earns sums significantly in excess of the sums required to meet her and her family's reasonable domestic needs.'
After her first bankruptcy in November 2019, Ms Price was made bankrupt again in March 2024 over an unpaid tax bill worth more than £750,000.
The first IPO was made in February last year and covered Ms Price's monthly income from four companies, including the adult entertainment website OnlyFans, with more added at a hearing in July last year.
At that hearing, a judge also issued a warrant for Ms Price's arrest after she failed to attend.
She was due to attend a public examination in August last year to face questions over her finances, but this was adjourned so she could attend a 'private interview'.
Both bankruptcies were then discharged earlier this year, but the IPOs remain in force as they were applied for before the bankruptcies ended.
It marks the latest chapter in the former beauty star's long-running financial battle, which previously saw her served an eviction notice from her 'Mucky Mansion'.
She purchased the property in 2014 from former Tory peer Francis Maude and it featured in a Channel Four series as she attempted to renovate the house.
But Price was evicted for not paying the mortgage in May last year and was forced to sell the rundown nine-bedroom home.
It was put on the market for £1.5million but was later sold for £1.15million.
Price didn't see a penny for the sale as it was swallowed up by the debts she previously ran up against the Sussex home.
She has since moved into a new four-bed property in Sussex.
This week Price was spotted for the first time with her new dog, in defiance of animal charities who have previously begged her not to own pets.
Price has been condemned by animal charities over the years for owning pets after a series of deaths. Last month, she sadly lost one kitten after her designer cat Doris gave birth, with one struggling to latch on to feed.
This marked the eighth animal to die in her care.
Five dogs, a horse, and a chameleon also all died while in her care - many of them in traffic accidents near her former home in Sussex.
She has previously attributed these tragedies to 'bad luck', with most occurring while she was away and says she has secured the garden of her new home to ensure her pets' safety.
