Katie Price was scheduled to appear in front of the High Court to explain how she has been repaying a £3.2 million debt. However, according to The Sun, Price was able to strike up a last-minute deal with the court to pay a 'small contribution' now and install a new payment plan to pay back her debts in due time.
A source told the publication:
It was all very last minute but she wanted to avoid court. Katie does want to pay back the money but it’s been slow progress.
Crawling under debt
According to reports, the 43-year-old actress has not been entirely engaged in paying her debts despite earning hundreds of thousands of pounds in marketing partnerships and a whopping £45,000 for her Channel 4 show Mucky Mansion.
Price rose to popularity as a glamour model in the 1990s under the name Jordan. She was once estimated to be worth over £40 million. However, she declared bankruptcy in 2019 after accumulating millions of pounds of debts under her company name, Jordan Trading Limited, in charge of her perfume and cosmetics businesses.
The former model planned to pay £12,000 a month to creditors through Individual Voluntary Arrangement (IVA), but she didn't follow through. After failing to pay a £500,000 debt, she was served with a repossession notice on her West Sussex home last year. If she does not come up with the money, she will lose her house.
After spinning her BMW X5 in a drink-and-drug-fuelled crash, Price received a 16-week prison sentence postponed for a year in December. Before getting behind the wheel last September, the former Loose Women actress had been on an all-night binge. She was released from prison after completing treatment at The Priory. However, she could be arrested for reportedly violating a restraining order against her ex-boyfriend Kieran Hayler's new fiancée.