Katie, 40, surprised everyone this week when she swerved being declared bankrupt and her plan to pay off her £22,000 debts was accepted by the High Court.
Even Katie herself was surprised that she managed to come up with a plan to beat the deadline – admitting she had to film last minute scenes for her reality show.
Now, friends of Katie claim that she was bailed out by a close pal who generously agreed to loan her the money for her debts.
“Katie has a lot of loyal friends who didn’t want her to go bankrupt,” says the source.
“And one in particular wanted her to avoid bankruptcy as they knew how much it upset her.
“They agreed to lend her the money to pay off her debts. It’s not a gift, it’s just until Katie gets back on her feet and is back to her best.
“She’s really grateful and will work hard to pay it off.
“She’s looking forward to a relaxed Christmas at home with all this behind her.”
Katie’s rep didn’t respond to a request for comment.
Until a few weeks ago, Katie thought she’d officially go bankrupt – even saying in the trailer for her reality show, My Crazy Life, that it was happening.
"I will be out of bankruptcy in a year. It's not that bad,” she told the camera.
"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."
But after the court hearing, Katie hastily re-recorded scenes.
The star addressed her money struggles as she prepared Christmas dinner with pals, telling them: “I do actually have some good news. You know I like to prove people wrong?"
After dancing about, she continued: “Well, they are wrong. I had my court today and guess what I am not going bankrupt.
"So I am starting a new year, new beginnings , no bankruptcy. So that is why today is good, nothing can go wrong.”
Looking elated, the mum-of-five continued: “It’s like everyone’s obsessed with it… they see me as this big businesswoman who made s*** loads of money and as soon as the word bankrupt hits anyone, everyone is like ‘oh my God’.
The verdict on Katie’s case was announced earlier this week.
The case was previously adjourned following a hearing in August to allow time for the consideration of an Individual Voluntary Agreement.
An IVA is a formal agreement which lets people with debt repay their creditors at an affordable rate in a bid to avoid bankruptcy.
Lawyers representing her creditors told the court on Tuesday that her IVA proposal was accepted on November 30.
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