Katie Price has been dealt another devastating financial blow — with a judge ordering her to drastically cut her “extravagant” lifestyle and surrender nearly half of her monthly income to pay off creditors.
The former glamour model, who was declared bankrupt twice — first in 2019 and again last year — now faces new legal restrictions under an Income Payments Order (IPO).
This means Price, 47, will be forced to hand over 40% of her monthly earnings from multiple companies to bankruptcy trustees until February 2027.
The Court’s Tough New Ruling
In a hearing this week, lawyers for the trustee asked the bankruptcy court to impose a second IPO, targeting an additional 10 companies linked to Katie — including her media, entertainment ventures, and the partnership that acts as her management.
Neither Price nor her representatives appeared in court, but Deputy Insolvency and Companies Court Judge Stephen Baister went ahead with the ruling, saying she’d had “every opportunity” to attend.
He stated:
“The bankrupt’s expenditure seems to have exceeded her income, but that is only because she has adopted an extravagant pattern of expenditure — one she will now have to trim somewhat.”
The judge added that although Katie earns “significant” income as an influencer, she will still have “ample headroom” to meet reasonable needs after the payments.
Missed Payments & Mounting Debts
Rowena Page, representing the trustee, revealed that under the first IPO, Katie was supposed to pay a lump sum of £25,000, plus 34 monthly payments of £12,500.
However, she allegedly failed to make any of these payments, though more than £124,000 has been recovered through her associated companies.
Page told the court:
“It is apparent that Ms Price earns sums significantly in excess of what’s required to meet her and her family’s domestic needs. The second IPO should therefore be granted for the benefit of her creditors.”
A Long Battle with Bankruptcy
Katie’s financial troubles began in 2019 when she was first declared bankrupt over mounting personal debts. She was declared bankrupt again in March 2024, this time due to an unpaid £750,000 tax bill.
The first IPO, granted in February 2024, already covered income from four companies, including OnlyFans, with further firms added later that year.
She was later required to attend a private interview about her finances instead of a public hearing. Both bankruptcies were officially discharged earlier this year, but the IPO orders remain valid because they were issued before the discharges took effect.
Turning to Tours and Influencing
Despite her financial troubles, Katie has been touring the UK alongside her longtime friend Kerry Katona to generate extra income. She has also maintained her presence on social media and subscription platforms, where she continues to post exclusive content for fans.
The judge acknowledged that while Katie has achieved “considerable success” as an influencer, the court expects her to prioritize repayment over luxury spending.
“Her pattern of expenditure must be adjusted,” the judge concluded firmly.
What Comes Next
With this new ruling, nearly half of Katie Price’s monthly income from her various ventures will go directly to her trustees for the next three years.
For fans and followers, it’s another twist in the reality star’s ongoing financial saga — one that continues to unfold in the public eye.
