Katie credit plan to avoid bankruptcy

FORMER glamour girl Katie Price has avoided bankruptcy after agreeing a plan to pay back what she owes.

A specialist insolvency and companies court in London heard yesterday Katie, 40, has agreed the plan with her creditors.

In October, she was given time to negotiate a deal with the taxman over her finances by a judge at an insolvency and companies court.

The case was previously adjourned following a hearing in August to allow time for the consideration of an Individual Voluntary Agreement.

Lawyers representing her creditors told the court yesterday that her proposal was accepted on November 30.

An IVA is a formal agreement which lets people with debt repay their creditors at an affordable rate in a bid to avoid bankruptcy.