In scenes filmed for her reality TV show My Crazy Life, Katie seemed calm at the idea of going bankrupt.
“I will be out of bankruptcy in a year. It’s not that bad,” she stated in the Christmas special.
“I’ve got nothing to be ashamed of anymore. Loads of people go through it like me.
“It’s just a matter of going through the motions. This is what has to be.”
Mirror Online has contacted Katie’s rep for comment.