Katie Price dealt blow as judge warns her to cut back on 'extravagant spending'
The influencer is set to lose almost half of her monthly income to pay back to trustee of previous bankruptcies.
Reality star Katie Price has been told to cut back her "extravagant pattern of expenditure" by a judge.
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The 47-year-old is set to lose almost half of her monthly income from multiple companies to pay off creditors.
Price was first declared bankrupt in 2019 and again last year. While both have been discharged, she remains subject to an income payments order in court.
The terms of the restrictions meaning she must pay 40% of her monthly income from several companies to the trustee of her bankruptcies until February 2027.
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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% of Price’s monthly income to the trustee for three years.
The companies include media and entertainment firms and also the partnership which acts as her agent.
Price, or any of the ten companies, attended or were represented at the hearing but Deputy Insolvency and Companies Court Judge Stephen Baister said she had “every opportunity to appear and to make representations."
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," learning income "that by any standard would be regarded as significant."
He also said that “very substantial sums remain that provide ample headroom” for Price, despite the second IPO being made.
Rowena Page, for the trustee, told the court in written submissions that 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 £124K had been paid to the trustee by the companies covered by the first IPO.
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.