Bankrupt Katie Price heading back to court after failing to pay £3.2m debt

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Bankrupt Katie Price is reportedly set to return to court next month to get out of paying her £3.2million debt.

After being declared bankrupt in November 2019, the 42 year old was required to pay £12,000 a month to her creditors after taking out an individual voluntary arrangement (IVA) – however, she has allegedly failed to take this action.

The former glamour model is now said to have been ordered back to court next month so officials can review her attempts to pay back her debts.

A source told The Sun: "Katie is due back next month – the debt is huge and it's unlikely she'll be able to pay it all back. She hopes the court is understanding in why it's been slow progress."

A representative for Katie told the Sun: "Katie continues to work closely with her trustees and creditors to resolve the terms of her bankruptcy. She remains committed to delivering a positive outcome for all involved."

OK! has contacted them for further comment.

In August 2019, the mother of five, who was married to Kieran Hayler at the time, initially avoided bankruptcy as she was allowed 12 weeks to pay off her debts in August 2019.

After failing to do so, her bankruptcy was then extended to November 2020 to allow her extra time to earn back the money she owed.

However, she has reportedly failed to pay back her £3.2 million debt and will now be back in court to address her financial woes.

In a recent interview with OK! magazine, Katie, who is trying to conceive a child with Carl Woods, admitted she "loves" being bankrupt – and wants to stay in it for as long as she can.

"I've been sucked dry in the past. I was mentally abused and broken by everyone," she said. "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 continued: "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.

"It has been a secret security to me that Carl is not with me for any money I have, as I don't have millions in the bank.

"I want to stay in bankruptcy as long as I can. It's only supposed to be a year and I'm like, 'No!' The longer I can keep it up, the better for me."

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