Katie Price dialled into her bankruptcy hearing from her holiday in the Maldives.
The former Celebrity SAS: Who Dares Wins contestant apologised to a court for not dealing with her bankruptcy issues, saying she was not "in the right mental state to understand" the process.
The mum-of-five opened up about her mental health problems and said she now feels "progress is being made".
After struggling to pay her debts, Katie was declared bankrupt last year. At the time, JMW Solicitors, who represented the insolvency practitioner overseeing Price's IVA, said: "She hasn't acknowledged the petition."
The former glamour model was declared bankrupt on November 26, 2019 and is now facing further proceedings over her finances.
She appeared over Skype from the Maldives, where she is currently on holiday, for a hearing at a specialist insolvency and companies court in London on Tuesday.
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The 42-year-old read out a statement, saying the importance of taking time to write things down is part of her therapy and the "process of dealing with my mental state whilst on the road to recovery".
She told a previous hearing in July that she had "lost everything" and suffered a "bad breakdown" last year, following which she spent five weeks in The Priory.
At Tuesday's hearing, she told the court: "It is a long and tense process but I feel progress is now being made.
"I can only apologise, I just haven't been able to deal with these issues or in the right mental state to understand everything that has been going on."
The former I'm a Celebrity... Get me Out of Here star said creditors and officials may think her engagement with them is "too little too late" but that the "progress is real" and she has now provided financial information.
Katie Price, formerly known as Jordan, was once said to be worth more than £40 million.
She told the court: "In the past, at the height of my career, I was a model and massive taxpayer."
At a hearing in October 2018, she was given time to negotiate a deal with the taxman over her finances and her proposal for an Individual Voluntary Agreement (IVA) - a formal agreement which lets people repay debts at an affordable rate in a bid to avoid bankruptcy - was accepted.
However, the renewed bankruptcy proceedings were brought last year after she failed to meet the terms of the agreement.
Janet Hallamore, for the Official Receiver, told the judge on Tuesday that there are currently three issues to resolve, involving Ms Price's "income and expenditure", how she has been funding recent holidays, and the "theft of jewellery".
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Katie said she had reported her "lost and stolen jewellery" to the police more than six months ago and said her home has also been "subject to vandalism".
She also referred to a Suzuki 4x4 she owns, telling the court it is not roadworthy so has "no value other than sentimental value".
She added: "I appreciate I have not been easy to communicate with and hard to track down, but I have not hidden.
"I will work hard to make this right, however long this takes."
The reality star attempted to explain her present holiday, but was mostly inaudible over the link to the court.
One of her creditors is her ex-husband Alex Reid, after she was ordered to pay him £25,000 by a High Court judge last year as a result of misusing private information about his sex life.
Katie's love life has faced much attention over the years during her quest for happiness.
She told the hearing the thought that Mr Reid may be attending court pushed her "anxiety levels through the roof" and had contributed to her mental state.
At the July hearing - which Mr Reid attended in person - she told the court she owned a house, but was living in a rented property, and that her only other assets were a Beetle car, a horse and a pony.
Judge Schaffer adjourned the proceedings until November 18 for a directions hearing, and Katie may have to undergo an examination for the court to assess her finances.