Bust

Kerry's served with bankruptcy letter over her £1m debts

By Jane Atkinson

WAYWARD Kerry Katona is facing bankruptcy proceedings over her debts of nearly £1MILLION.

The star could lose the roof over her head after blowing a fortune on DRUGS, BOOZE and PARTIES.

As she prepared for her 11-month-old daughter Heidi's christening last week Kerry was served with official papers by the Land Registry Bankruptcy Unit.

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They warned her insolvency proceedings were going ahead—and secured her two properties so they can be sold off to pay creditors.

The big spending ex-Atomic Kitten singer and her husband, former drug dealer Mark Croft, have hired a team of insolvency advisors to help sort out their main debts.

These comprise £700,000 claimed by the taxman—including an immediate £200,000 instalment—and £60,000 in loans and credit card bills.

A close friend of the 27-year-old Iceland advert star said: "She was told she needed to pay £200,000 in tax by Christmas. She could lose everything."

Yet last month Mark got a new £127,000 Ferrari—despite having a Lamborghini, Aston Martin, Porsche 911 and Mercedes in the garage of their £1.2million home in Wilmslow, Cheshire.

Now the property, where Kerry lives with Mark and her three daughters, could be sold to meet her debts.

She could also have to sell the two-bedroomed Warrington house she bought for her mother Susan, 47.

Payments

Kerry still owns the terrace property and our source said: "Susan is in pieces about this. She doesn't know where she'll end up."

A spokesman for Kerry said: "The debt now stands at less than £250,000 and will be cleared with two more payments. This arrangement was agreed with the HM Revenue & Customs.

"Kerry believes there is no risk of bankruptcy."