LONDON — In a recent ruling that tightens the reins on her finances amidst ongoing bankruptcy proceedings, British celebrity Katie Price’s earnings from TikTok have been temporarily frozen. This decision marks the latest development in the legal efforts to manage the substantial debts accumulated by the former glamour model.
The Insolvency and Companies Court judge, Catherine Burton, mandated the suspension during a court hearing on Monday. These proceedings fall under Price’s larger financial scrutiny, which has included control over her income from various sources like the adult entertainment platform, OnlyFans.
Earlier this year, Price was commanded to redirect 40% of her OnlyFans revenue to a bank account overseen by the trustee managing her bankruptcies. This measure was an attempt to systematically tackle the debt problems that led to Price declaring bankruptcy twice, first in November 2019 and again in March of this year due to an unpaid tax bill exceeding £750,000.
As Price’s financial affairs come under closer legal supervision, the coverage of her earnings has broadened. In July, the payment order previously confined to her OnlyFans income expanded to include eight additional companies that contribute to her earnings.
At the core of the trustee’s strategy, articulated by barrister Darragh Connell during the hearings, lies the concern that income made by Price might not entirely reach the trustee designated to manage her bankruptcy discharge plan. Connell emphasized the ongoing challenge of ensuring compliance with these financial directives, noting that without such supervision, substantial amounts could bypass the structured repayment strategy.
During the discussions concerning TikTok’s role in this financial arrangement, the platform’s legal representation acknowledged the payment of £84,000 to Price under a three-month contract for creating promotional e-commerce content. They also recognized additional smaller payments linked to third-party commissions, totaling just under £10,000.
Despite TikTok’s lawyers stating their intent to comply with the court’s orders, they highlighted the technical and procedural complexities involved in adjusting how content creators, like Price, are compensated.
The effort to secure Price’s earnings for debt repayment was momentarily complicated earlier this month when she was arrested at Heathrow Airport after failing to appear at an earlier mandated court date. This recent legal mandate stresses that all forthcoming income, temporarily halted from TikTok, remains critical in the trustees’ efforts to manage and mitigate Price’s outstanding debts effectively.
The ongoing legal proceedings against Price illuminate the broader issues celebrities face with financial management, especially when their earning mechanisms are as diversified and digital as those of content creators. With her next court appearance scheduled for August 27, Price has been stringently ordered to attend, underscoring the severity with which the court views her compliance in resolving her financial obligations. The ultimate resolution of Price’s financial rehabilitation efforts remains closely watched, as it underscores the intricate balance between celebrity earnings and legal accountability in managing significant financial downturns.