Katie - the Price of Bankruptcy
INSOLVENCY NEWS:
-
Katie Price was declared bankrupt in March 2019 and again in March 2024, for failing to pay HMRC £740,000. Having failed to co-operate with her trustee in bankruptcy, Katie failed to attend court on 30 July, the second hearing she had failed to attend. A warrant for her arrest was ordered and Ms Price was arrested and brought before the Insolvency and Company Court immediately upon arrival into the UK.
-
Judge Burton stated that “the reason for Ms Price’s failure to attend court was irrelevant”, showing the lack of tolerance left for Ms Price, who had “only provided basic information in relation to her bankruptcies”.
Ms Price, instead of attending court, had gone to Turkey, which she says was to carry out work, filming a documentary about plastic surgery procedures.
However, Ms Price was then arrested on her arrival back to Heathrow and taken to court. Ms Price representing herself, was ordered by Insolvency Judge Burton, to attend court the next hearing, and given a very serious warning, that she must attend. Ms Price asked if the hearing could be by way of video hearing, but this was refused by the judge.
This story highlights the importance for any individual going through bankruptcy, to co-operate with the insolvency practitioner (trustee in bankruptcy), dealing with that individual’s assets, whose job it is to call in and distribute the bankrupt’s available assets in accordance with the law and to investigate transactions leading up to the bankruptcy. The individual must therefore co-operate to avoid making the situation far worse.
Judith Owen, Head of Lawson West Solicitor's Insolvency, Restructuring and Bankruptcy services adds:
"There are various stages to bankruptcy. It is a formal legal process and it has future implications for your life. You should attend all court hearings and a continued reluctance to attend can end you up in prison. All insolvency actions are formal procedures requiring full disclosure, the process of which is laid down in law. A reluctance to attend court for an insignificant reason will not be taken lightly by the judge."
Lawson West – we can provide advice to individuals, companies and insolvency practitioners on legal aspects of Insolvency, including bankruptcy. You can Contact Us here.
View all
