Things have gone from bad to worse for Katie Hopkins, who is now teetering on the verge of bankruptcy after being forced to apply for an IVA to manage her crippling debts.

The racist commentator, who made a living from writing reams of vile content about immigrants and Muslims, had to take out an Individual Voluntary Arrangement to manage her debts after racking up a six-figure bill when she lost a libel case to writer and campaigner Jack Monroe.

Jack revealed that Katie has now paid the £24,000 in damages she was told to hand over after a judge ruled she'd caused "serious harm" to Jack's reputation with a tweet she posted in May 2015.

She had written: "@MsJackMonroe scrawled on any memorials recently? Vandalised the memory of those who fought for your freedom. Grandma got any more medals?"

Hopkins' tweet, Jack said, implied she had either vandalised a war memorial or "condoned or approved" of the criminal damage to the memorial - something that was clearly untrue as Katie had confused Jack with another campaigner.

Jack asked Hopkins to apologise on Twitter, but the far-rightwinger refused - resulting in Jack consulting a legal team and filing a complaint of defamation against her.

(Image: Twitter/@MxJackMonroe)

The court case ended in March 2017 with a jubilant Jack - and a bill of £107,000 in costs that Hopkins was instructed to pay within 28 days.

But with lucrative work from the Daily Mail drying up and her radio job at LBC being taken off her after she called for a "final solution" in the wake of the Manchester Arena terror attack, Katie seems to have struggled with her finances.

She put her luxury £1million Exeter mansion on the market in February this year, selling it for £950,000 within three weeks.

Taking to Twitter to announce the news of Hopkins' IVA, Jack wrote: "I can confirm today that following that landmark libel case, Katie Hopkins has entered into an IVA to avoid bankruptcy. I knew for a while but could not say anything for legal reasons. The arbitrary defender of free speech didn't want anyone to know, ironically..."

(Image: insolvencydirect.bis.gov.uk)

She went on: "I have been paid in full, but many of her creditors, including my lawyer, will not be paid what they are owed. For the want of an apology, a house, a job, a column, a radio show, and now financial solvency, were lost. It's all very sad, actually.

"I'm not cruel nor celebrating - that case cost me 18 months of sanity and work, and I think neither of us wanted it to turn out this way. (I can recommend an excellent budget cookery book or three, for getting back on your feet, though)."

Hopkins is yet to respond to Jack's tweets publicly, and her rep has not responded to Mirror Online's request for comment.

She has been plugging the documentary she made in South Africa earlier this year, when she was detained at the airport on her way home for spreading racial hatred .

(Image: Twitter)

(Image: Twitter)

Hopkins was temporarily banned from travelling back to the UK when authorities hauled her aside and marked her passport for spreading racial hatred - something she was all too happy to brag about to her followers.

While she was out there, she hit headlines for being treated with ketamine in the street after suffering from a dislocated shoulder - but later complained she hadn't taken the drug willingly.

Ironically, just four and a half years ago, Katie tweeted some thoughts about people who get themselves in debt - and it's now coming back to haunt her.

(Image: Twitter)

The tweet read: "The only thing people in debt have in common other than bad money management, is an ability to blame anyone but themselves."

Ouch.

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