Katie Price reacts to her second bankruptcy over unpaid tax as she insists she isn't 'getting away' with it and does pay bills while saying she's 'dealing with serious stuff'

Katie Price has reacted to being declared bankrupt for a second time over an unpaid tax bill, while speaking exclusively to the Mail’s comedy podcast Straight to the Comments!.

The former glamour model’s second bankruptcy was revealed on Monday, after the star, 45, failed to pay over £750,000 in unpaid tax – and will now face losing her home unless HMRC can recover the money.

Katie failed to appear at a court hearing in London to explain why she has not paid any money to HMRC.

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.

Katie was speaking to Straight to the Comments! when the news broke, which embraces the hilarity and uniqueness of the MailOnline comment section with the celebs in question, with her episode to air next week.

Katie Price has reacted to being declared bankrupt for a second time over an unpaid tax bill, while speaking exclusively to the Mail’s comedy podcast Straight to the Comments!

The former glamour model’s second bankruptcy was revealed on Monday, after the star, 45, failed to pay over £750,000 in unpaid tax – and will now face losing her home unless HMRC can recover the money

When told there was a new story about her, Katie gasped in shock and said: ‘Has it? Oh get lost! Are you actually serious, while I’m sat here? What have I done now?’

After hearing that she had been declared bankrupt a second time, she said she had been signed off because of ‘serious stuff’ in her life.

She said: ‘I know I had court last week or the week before. Because of what’s going on in my life, I’ve actually been signed off because I’m dealing with serious stuff.’

Katie went on to claim that she ‘doesn’t get away’ with not paying, insisting that she is making payments.

She said: ‘There’s all different kinds of bankruptcy, I think they just use the word bankruptcy. No one actually knows the ins and outs of everything.

‘And trust me I don’t get away with stuff either. Like you can’t – tax you can’t ever run away from, you have to pay. Don’t think I sit here and don’t pay stuff because I do.’

It is the second bankruptcy faced by Katie 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 Katie had been served with a petition on November 27 2023 with a demand for £761,994.05.

Katie failed to appear at a court hearing in London to explain why she has not paid any money to HMRC

Katie was speaking to Straight to the Comments! when the news broke, which embraces the hilarity and uniqueness of the MailOnline comment section with the celebs in question, with her episode to air next week

After hearing that she had been declared bankrupt a second time, she said she had been signed off because of ‘serious stuff’ in her life (pictured 2019)

The huge amount is made up of unpaid tax from self-assessment on her earnings from 2020 – 2022 as well as penalties and surcharges.

The court was told she owed £142,405 in tax for 2020-2021 and £196,735 for 2021-2022.

The judge said she also owed £140,000 in unpaid VAT and added:’ As with the unpaid tax no payment has been made.’

Katie 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.’

Katie, who has become known for her flouting her surgically enhanced figure on overseas trips, was first made bankrupt in 2019 when her company went bust.

She has failed to appear at an insolvency hearing on six previous occasions with the model submitting an excuse for her no show each time.

Creditors are owed the £3.2million from her company selling perfume and cosmetics.

It is the second bankruptcy faced by Katie as she is being chased by creditors for a £3.2million payment over the failure of her company Jordan Trading Ltd

A HMRC source said every effort will be made to recover the money and if not paid then assets owed by Katie will be seized.

The debt to HMRC could see her lose her £2million home dubbed the ‘Mucky Mansion’ after it fell into a state of disrepair.

Last month, a judge at the High Court ruled Katie is set to lose nearly half of her monthly income earned on OnlyFans to cover her debts.

A court in London heard from barrister Darragh Connell – who was representing the trustees – that Katie had previously reached a voluntary agreement over her debts but failed to pay up.

He informed a specialist bankruptcy judge that the previous agreement included the TV personality making 36 monthly payments of £12,500 as well as a lump sum.

The trustees went to court to request an income payments order, meaning money would go from any salary towards paying Katie’s outstanding debt.

Four companies were listed, including adult subscription website OnlyFans and celebrity photography agency Backgrid.

At the end of the hearing, Insolvency and Companies Court Judge Catherine Burton declared the four companies are ‘obligated to deduct 40 per cent of the income due to be paid to Ms Price’ each month for the next 36 months.

The debt to HMRC could see her lose her £2million home dubbed the ‘Mucky Mansion’ after it fell into a state of disrepair (pictured)

She added that the 40 per cent portion will now be paid to a bank account chosen by the trustees.

The court was told that Fenix International Ltd, the parent company of OnlyFans was not disputing the order against Katie.

Judge Barton said that the reality star is due to face further questions about her finances in April.

In October, Katie appeared on Michelle Visage’s Rule Breakers podcast and said she was ‘fed up’ of facing legal action and said she would willingly go to prison to be ‘done with it all’.

She added that she had recently been to court ‘more times than I’ve had hot dinners’ and would ‘genuinely’ not care if she was jailed.

She also told Daisy May Cooper on her Educating Daisy podcast: ‘If they put me into prison, it’s another chapter for the book.’

During an appearance on Jeremy Vine’s Channel 5 show in March last year, the former Celebrity Big Brother star discussed her bankruptcy and how she had been struggling with her mental health in recent years.

She said: ‘You shouldn’t be ashamed if you have a bankruptcy because for different reasons people go into bankruptcy.

In October, Katie appeared on Michelle Visage ‘s Rule Breakers podcast and said she was ‘fed up’ of facing legal action and said she would willingly go to prison to be ‘done with it all’

‘I went through a really, really tough time the past three years, mental health and this and that.

‘And when you go through that, you might get bills through and you put everything to the side because you can’t cope with anything.’

During a previous court hearing in October 2020, Katie apologised to the court, adding: ‘I just haven’t been able to deal with these issues or in the right mental state to understand everything that has been going on.’

She also said creditors and officials may think her engagement with them is ‘too little too late’ but that the ‘progress is real’ and she had provided financial information.

In July last year, Katie hit back at internet trolls who questioned her over her bankruptcy, insisting she still ‘owns her £2.5million house’.

Speaking on TikTok Live, she answered questions from her followers, urging internet bullies ‘not to knock anyone’.

‘I’m bankrupt, yes, but I still own my 2.5million pound house and I’m sat here in the kitchen doing my TikTok to you,’ she said.

‘Never knock someone who is bankrupt, we all can go there but it doesn’t mean that it is all bad.’

Katie continued: ‘Yeah, my company went bankrupt and you deal with it don’t you. So, don’t ever knock anyone because it could happen to you.’