Katie Price Given Three Months by Judge to Solve Financial Crisis
WENN/Lia Toby

The judge agreed to adjourn the hearing for almost three months to give the former glamour model time to reach an agreement with her creditors.

AceShowbiz - Katie Price's legal team appeared in a bankruptcy court on Tuesday, August 07 as part of her ongoing financial crisis.

The "Loose Women" panelist's team appeared before Judge Barnett, the Deputy Insolvency and Companies Court Judge at the Rolls Building, part of London's High Court, on Tuesday morning, with reports suggesting that she could be formally declared insolvent as she has been trying to stave off bankruptcy.

However, in a hearing that lasted less than two minutes, the judge agreed to adjourn it for almost three months, until 30 October, to give the former glamour model time to reach an agreement with her creditors.

According to the Press Association, Judge Barnett was told both parties had decided upon an adjournment so they could consider an Individual Voluntary Agreement (IVA), a formal agreement which lets people with debt repay their creditors at an affordable rate, in a bid to avoid bankruptcy.

Ahead of the hearing, her representative said she was "working with her advisors to resolve her current financial issues," and added, "She hopes to be in a position to do so and reach agreement with her creditors."

It was recently reported that the 40-year-old, who had an estimated fortune of $58 million (£45 million), was $130,000 (£100,000) in arrears on the mortgage of her $2.5 million (£2 million) mansion in West Sussex, England and had five county court judgements totalling more than $32,000 (£25,000) against her name.

It is thought the mother-of-five, who recently split from third husband Kieran Hayler, is looking to sell off the property, which has been pictured in a state of disrepair. It was also suggested she was selling off her farmyard animals to help her financial situation, with a source saying she "isn't as flush as she was".

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