How Katie Price racked up £3.2m worth of debts after her perfume company failed

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Katie Price has been declared bankrupt for a second time after failing to pay over £750,000 in unpaid tax - and will now face losing her home unless HMRC can recover the money.

READ MORE:After nearly 30 years in the spotlight Katie Price has seen it all, with her rises and falls worthy of any TV drama.

On Monday the 45-year-old was declared bankrupt for the second time in 10 years after racking up millions of pounds in debt. Price was still in her teens when she first entered the nation's consciousness, skyrocketing to fame overnight with her very spicy glamour photos in the 1990s. At its zenith Price was worth a reported £45million, splashing out on fast cars and an opulent £2million 11-bedroom mansion.

However, the opportunities dried up and her extravagant spending has caught up with her in recent years.Katie Price declared bankruptcy for the first time in 2019 after the failure of her company, Jordan Trading Ltd In 2019 she declared bankruptcy with debts of £3.2million after the failure of her company, Jordan Trading Ltd.

Years earlier, in a bid to avoid losing her home, Price had taken out a second mortgage on the property, leaving her facing monthly payments of £12,300. EXCLUSIVEREAD MORE HERE: Furious MP says Katie Price should be JAILED for driving her Range Rover without licence after she was given just £880 fine despite notching up SIX previous bans Advertisement The trustees went to court to request an income payments order, meaning money would go from any salary towards paying Katie's outstanding debt.

Unless the taxman can recover the money through other ways, Price could face losing her home, which has been dubbed 'Mucky Mansion' after it fell into a state of disrepair. The huge amount is made up of unpaid tax from self-assessment on her earnings from 2020 – 2022 as well as penalties and surcharges. Price was declared bankrupt again on Monday after failing to pay hundreds of thousands of pounds in tax

The judge said: 'There is a substantial debt due from Miss Price due to HMRC and therefore I will make a bankruptcy order.'

 

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How Katie Price racked up £3.2m worth of debts after her perfume company failedKatie Price has been declared bankrupt for a second time after failing to pay over £750,000 in unpaid tax - and will now face losing her home unless HMRC can recover the money.
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