Katie Price is the threat of arrest by police after failing to attend a court hearing over her bankruptcy.
The former glamour model, 45, 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.
She was due to give evidence about her finances at the High Court today and provide evidence to a judge about her income to show how she is able to pay off her debts.
However, at the start of the hearing, lawyers said that Katie had told them that she couldn’t attend less than 24 hours before.
According to The Sun, one barrister told the judge: ‘It’s quite apparent that the evidence was filed very late and not even filed with the court.
Katie Price was declared bankrupt for a second time after failing to pay over £750,000 in unpaid tax
Katie standing in front of her home, dubbed ‘Mucky Mansion’, which she could lose over her debts
Katie is already being chased by creditors for a £3.2million payment over the failure of her company Jordan Trading Ltd
‘We are in a very serious situation as a consequence.
‘She may be held in contempt of court, imprisoned, fined or a warrant issued for her arrest.’
Last month, a judge at the High Court ruled that she be declared bankrupt after an official from HMRC said she has failed to pay any money owed or responded to any correspondence since the demand was made for the unpaid tax last year.
It is the second bankruptcy faced by Price as she is being chased by creditors for a £3.2million payment over the failure of her company Jordan Trading Ltd.
Judge Sebastion Prentis sitting at the High Court Rolls Building said Price had been served with a petition on November 27 2023 with a demand for £761,994.05.
The amount is made up of unpaid tax from self-assessment on her earnings from between 2020 and 2022 as well as penalties and surcharges.
The judge said she also owed £140,000 in unpaid VAT and added:’ As with the unpaid tax no payment has been made.’
Price previously revealed that she didn’t feel able to attend court to discuss her finances.
Speaking exclusively to the Mail’s comedy podcast last month, she said: ‘I just can’t cope with going to a court. Mentally, I can’t do it.’
Katie went on and explained: ‘Since my breakdown. When you are ill and depressed everything accumulates.
‘If you can’t cope with something or you haven’t paid that bill. Communicate, don’t ignore because when you ignore it, it just gets worse.
‘It does upset me because they don’t know how hard I’ve tried mentally to get out of that rut that I was in. A rut that I hung myself and thought I’d died.’
Price was served with papers in October by HMRC informing her of the debt owed – and she has failed to respond to the demand.
The judge said: ‘There is a substantial debt due from Miss Price due to HMRC and therefore I will make a bankruptcy order.’