Former pop star and reality TV regular Kerry Katona could face bankruptcy if she fails to resolve her current financial difficulties, according to reports.
The 27-year-old was told during legal proceedings at the high court recently that unless she paid off her outstanding tax bill she would likely be obliged to declare bankruptcy.
According to MSN UK, the former member of the pop group Atomic Kitten has an unpaid tax bill worth close to £420,000 and has been unable to settle it because of what her lawyer Luke Harris called “changed circumstances”.
“She’s also strenuously seeking to remortgage her properties. But if the money comes in there is no need [for further action]. I would ask for one final indulgence by the court,” said Mr Harris.
Figures released by the Credit Action charity earlier this month suggested that one person in the UK is declared insolvent or bankrupt every four minutes.