On 18 March 2024, just 5 years after being made bankrupt for unpaid debts, media personality Katie Price (“Ms Price”) was made bankrupt for the second time as a result of an unpaid tax bill in the sum of £761,994.05 to HM Revenue & Customs.
This week an arrest warrant has been issued for Ms Price after failing to attend a hearing on 30 July 2024 in respect of her bankruptcy.
Ms Price was due to face questions related to her finances at a hearing but as per the comments of Judge Catherine Burton, Ms Price failed to ‘attend the hearing’ and therefore it is ‘necessary that the court issue a warrant for Ms Price’s arrest’.
According to the Official Receiver’s barrister, Darragh Connell, Ms Price had suggested she would deliver some of her vehicles to the trustee to try and pay off the balance of her bankruptcy. This included a pink Range Rover with a personalised registration plate with the initials of Ms Price.
When an individual is made bankrupt, they have a duty to co-operate with the Official Receiver or trustee in bankruptcy. These duties are found within section 291, section 312 and section 333 of the Insolvency Act 1986.
A full list of duties is given to the bankrupt at the beginning of the process. A number of those which are:
-
Deliver up possession of their estate including property
-
Deliver up possession of their books and records
-
Provide an inventory of their estate and any other relevant information
If a bankrupt fails to co-operate, without reasonable excuse, then they could be compelled to attend court to be questioned on oath and be ordered to produce relevant documents. In the most severe cases an application for a warrant of the arrest of the bankrupt can be made if the bankrupt does not comply. The Official Receiver / Trustee in Bankruptcy will normally seek other means of enforcement, for example public examination, and consider an application for a warrant for arrest only after other action has proved unsuccessful.
If you are a bankrupt and have concerns regarding your duties to co-operate with the Official Receiver, please contact our specialists at Farleys on 0845 287 0939 or contact us by email.