KATIE Price was last night discharged from her second bankruptcy – and has now vowed to claw back her lost £100million fortune.
It brings to an end six years of financial hell for the 46-year-old model, and she has now been discharged from her second bankruptcy, relating to an unpaid tax bill of over £750,000.
This follows Katie being discharged from her first bankruptcy on 11 February 2025.
The star thanked fans for their support following a zoom call with her lawyer, telling The Sun: "I'm so happy. "I can finally move on and put these bankruptcies behind me and now only focus on the positive.
"Thank you to everyone that has supported me through this process."
Her tax debt included income tax, VAT, surcharges, and interest, stemming from self-assessments for the two years up until 2022.
Last night a source added: "Kate has been through hell and feels like an enormous weight has been lifted off her shoulders.
"This has been hanging over her like the sword of Damocles – and now she is free to re-set, and try and remake her lost millions. If anyone can do it, it's The Pricey."
And last February a judge ordered her to pay 40% of her monthly income from the adult entertainment website OnlyFans until February 2027.
An arrest warrant was also issued after she failed to attend a court date.
She was due to face questions about her finances in a public examination, but this was adjourned to allow her to attend a private interview with the trustee.
Her solicitor Chris Keane, from Fieldfisher LLP, said: "Without specialist insolvency advice, Katie really didn't fully understand the bankruptcy process or the consequences of any failure to attend on the Trustee in Bankruptcy when asked to do so.
"Since engaging specialist insolvency solicitors, Katie has been fully compliant with her Trustee in Bankruptcy and has been discharged from both bankruptcies in short order."
What is bankruptcy and what did it mean for Katie Price?
Bankruptcy is a legal status whereby debts cannot be repaid.
In the UK being bankrupt is limited to applying to individuals but in the US and some other countries, it can be applied to companies as well.
The word itself is derived from the Italian phrase banca rotta meaning "broken bank".
In the modern world, it normally involves a restructuring of debts in an attempt to rehabilitate those who owe the money and sometimes continue with their business.
In most jurisdictions, people or companies are declared bankrupt by a court order.
On November 26, 2019 Katie Price was declared bankrupt after failing to pay her debts.
She was supposed to be paying off £12,000 a month to her creditors after taking out an individual voluntary arrangement (IVA) 12 months ago – but has failed to do so.
The reality star managed to dodge bankruptcy in early August 2019, but was only given 12 weeks to stave off financial ruin.
Katie saw her once lucrative media empire fall apart and the collapse of her businesses.
Then in March 2024, Katie was declared bankrupt for the second time.
The hearing, held at the Rolls Building in London, heard she owes HMRC a total of £761,194.05.
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