Another blow for KP
She avoided bankruptcy at the end of last year but it appears Katie Price’s money woes are far from behind her.
The 40-year-old could reportedly be forced to sell her nine-bedroom mansion in Sussex after it was revealed she is still £2.1m in debt.
Files allegedly sent to Companies House have revealed the agreement that was struck when her company, Jordan Trading, went into liquidation.
The agreement reportedly shows that if her debt is not been cleared within four years, then her house will be put on the market to pay off the remaining balance.
Despite Katie allegedly owing more than £2m, she will only have to pay back 41% of her total debts, which is £856,358.
This will be paid in monthly instalments across the next five years.
Katie’s new agreement is said to help her avoid bankruptcy, however according to the same files she hasn’t made a great start with her payment plan.
The records allegedly show that the former glamour model has only managed to pay back £27.96 since February 2018.
An insider told The Sun that these figures show ‘what a challenge she faces to turn things around.’
They added: ‘Most people will wonder how she has managed to avoid bankruptcy with an agreement which lets her get away without paying 59 per cent of what she owes.’
Katie entered into an Individual Voluntary Arrangement to help structure her debt when she avoided bankruptcy at a hearing in December.
Her case was heard at a specialist insolvency and companies’ court in Central London, which estimated her total debts ranged from £250,000 to £500,000.
At the height of her fame, Katie had amassed a £40 million fortune, with her company Jordan Trading reporting profits of £1.5 million a year.