KATIE Price has avoided jail again by striking a last-minute deal to pay off her debts. 

The reality star, who was due in the High Court today over her bankruptcy, has paid off a small amount of the money she owed and handed over a new payment plan. 

A source tells The Sun: “It was all very last minute but she wanted to avoid court. Katie does want to pay back the money but it’s been slow progress.”

Katie faced being sent to prison for contempt of court under the Insolvency (Amendment) Rules 2010 if she failed to appear at the meeting – held remotely – without notifying the judge.

She was declared bankrupt in 2019 and owes £3.2m to creditors including HMRC, her mortgage company and small businesses. 

After a court hearing in December 2020, she had a plan to pay £12,000 a month to creditors through an individual voluntary arrangement but failed to do so.

Last year she was hit with a repossession order on her West Sussex mansion after failing to pay a £500,000 debt.

For her Mucky Mansion C4 series, Katie was paid a huge £45k fee – and cashes in my selling her own bath bomb, make-up and equestrian lines. 

Last month, it was reported that Katie "hasn't been engaging fully in paying creditors".

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But this morning, an email went out to Katie’s creditors telling them: “The hearing has been adjourned to the next open date after 8 weeks by consent and vacated from the Court’s list today.”

The email added that Katie had made “payments into the estate, made several new significant concessions, agreed increased co-operation and consented to continued suspension of discharge”. 

The case will be reviewed in eight weeks when the court will hear if Katie has kept up repayments.

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