Katie Price facing new bankruptcy hearing after anonymous source tips court off about her 'lavish spending'
KATIE Price is facing a new bankruptcy hearing after an anonymous source tipped the court off about her "lavish spending".
The 42-year-old star was officially declared bankrupt last November – but hasn't lived a frugal life this year.
In fact, Katie has enjoyed no less than five holidays since her bankruptcy, and those who were owed money from the former glamour model are less than impressed.
The mother-of-five won't be discharged from her bankruptcy until November, and until then she is supposed to pay any money that she makes from either selling her belongings or paid work to the creditors.
A source told The Sun Online: "Katie's creditors have obviously seen her holidays, the products she's advertising and her days out on her YouTube channel and tipped off the bankruptcy court anonymously.
"Katie thinks she knows who it is – it can only be a creditor who has lost out on money when Katie went bankrupt. Her team have been told the hearing will be in court on 27 October."
Katie's popular YouTube channel earns revenue through advertisements that play before the videos.
She also regularly promotes products on her social media accounts, which would earn her a generous amount each time, and has her own clothing ranges.
Since November, Katie has enjoyed a luxury trip to Thailand, skiing in the French Alps, a holiday to Spain to see her mother Amy, her ill-fated Turkey holiday at a luxury five-star resort, and a romantic cabin getaway with boyfriend Carl Woods last week.
WHAT IS BANKRUPTCY AND HOW DOES IT IMPACT YOU?
WHEN you’re declared bankrupt your bank account may be frozen immediately and any items of value that you own, such as a house or car, may be taken away from you.
A person called an Official Receiver or Trustee is put in charge of your assets.
You will have to ask them before you spend money and you will only be given basic living expenses during the period of bankruptcy.
You are usually discharged from bankruptcy after 12months – but sometimes this can last longer.
For example, when Kerry Katona was declared bankrupt for the first time in 2013 it took over two years for her to get discharged.
You can’t borrow more than £500 without declaring your bankruptcy status, which makes it highly unlikely that you’ll be able to be accepted for credit.
Your home may be taken away from you and sold – but you may be given 12 months to find a new place.
You will be allowed to keep a car if its essential to your work, as well as clothing, basic household items, and bedding.
But if furniture is expensive then you may be told to replace this with cheaper alternatives.
Any money you make from the sale of items is then paid to your creditors.
Your credit score will be negatively affected too. A bankruptcy will stay on your record for at least 6 years and it could be as long as 15 years if you are subject to restrictions.
If you apply for bankruptcy it costs £680 but if a creditor – a firm which you owe money to – goes bankrupt then you won’t have to pay the fees.
She also showed off how much she got her son Junior for his 15th birthday – with just one of the teen's pile of presents setting her back £400.
Katie regularly documents fun days out and swanky dinners on her Instagram Story, suggesting that she has more cash than she let on to the courts.
In 2018, Katie – who was once worth an estimated £45 million – took out an individual voluntary arrangement agreeing to pay off £12,000 a month to her creditors.
When she had failed to do this 12 months later, the star was declared bankrupt – with it believed she had debts of around £800,000 at the time.
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