LOS ANGELES-Katie Price has been declared bankrupt.

The 41-year-old star was made bankrupt during a hearing at the Insolvency and Companies Court in London after failing to pay back the agreed £12,000 a month to her creditors.

Back in December, Katie was given an individual voluntary arrangement (IVA) to pay back what she owed - believed to be around £800,000 - in instalments every month until the whole debt was cleared.

Katie or a representative for her was not present at the hearing and was declared bankrupt.

Katie has had a difficult time of it lately, after she was banned from driving for two years last month.

She was slapped with six penalty points, a hefty fine and the 24-month ban at Bexley Magistrates Court in Bexleyheath on Thursday after she refused to tell police who was behind the wheel of her bright pink Range Rover, worth £130,000, when it crashed in October last year.

The reality TV stars lawyer had asked the court to adjourn the case today as she was out of the country, but District Judge Robert Hunter refused the request.

He said: ‘’This hearing has already been adjourned once. This date was agreed by both sides. I am not inclined to further adjourn this matter.’’

Katie - who already had six points on her licence before the crash last year - was ordered to pay a £440 fine, a £44 surcharge and £100 in costs.