KATIE Price may lose her £2 million family home as she prepares to return to court over bankruptcy repayments.

The former glamour model entered into an ongoing Individual Voluntary Arrangement with debtors in 2018 which reportedly allowed her to pay £12,000 a month over the course of four years.

But The Sun reports that a bankruptcy petition has been placed on the IVA, and that on 14 October she will find out if her Horsham home, which she lives in with new boyfriend Charles Drury, will be used as payment.

A bankruptcy petition is an application to the court for someone’s assets to be taken and sold to pay their debts.

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In December 2018 Katie swerved being formally declared bankrupt after her payment plan was accepted by the courts.

The Argus:

It came four months after Katie agreed to pay back her creditors over a period of time, with a follow-up bankruptcy hearing taking place on 30 October 2018 to hear her 12-week progress.

A report on 28 November alleged that Katie was "chasing her tail" with repayments because her "loans, mortgage, debts and taxes outweighed her projected income".

However in the December hearing, her terms for repayment by her creditors were accepted, and as long as she stuck to the plan, she was in the clear.

Mother-of-five Katie has fallen on tough financial times and in 2018 put the West Sussex mansion on the market, as well as attempting to sell an £100k Audi once bought second-hand for ex-husband Kieran Hayler.

The Argus:

She also admitted to staging paid photoshoots with paps. In 2016, Katie revealed she was not always great at managing her money.

The personality said: "Some people are very careful and they plan for the future or they pay their bills on time.

"I don’t. I have bailiffs at my door all the time."

Reps for Katie did not want to comment.