
We can reveal that soon to be homeless Kerry has had a shocking reality check after being REJECTED by Celebrity Big Brother for failing psychological tests.
The faded star had been banking on taking part in next month's Channel 4 show - and hoping to then bank the £250,000 cheque that comes with it.
Friends say the bankrupt mum-of-four was ecstatic after meeting in secret with the show's producers and then sailing through the interview process. But earlier this month she was sent for an assessment with a psychiatrist - as all would-be housemates have to do - and deemed UNFIT to appear.
Last night a close pal of the 29-year-old, told the News of the World: "Kerry is heartbroken - it's the first offer of work she's had in months and she's failed it because she isn't mentally well enough."
Offers of work have dried up for the former pop star since we exposed her for snorting cocaine. Last week we revealed how she will be evicted from her £1.5 million Cheshire pad for failing to keep up with mortgage payments.
And after losing a £250,000- a-year deal with supermarket chain Iceland, Kerry thought Celeb BB would rescue her from financial hell. Our source added: "Kerry believed Big Brother would resurrect her career and make the public warm to her again, like they did when she won I'm A Celeb.
"She has bipolar disorder but controls it with medication. When she came back from the interview with the psychiatrist, she thought she'd done really well.
"But when Kerry got the call saying the deal was off, she was horrified."
The line up for the last ever Celebrity Big Brother is rumoured to include former boy band star Dane Bowers, US rapper MC Hammer, actresses Lindsay Lohan and Jordan's on/off lover Alex Reid.
Boy George was also hoping to be a housemate but a High Court judge banned the singer because he's still on licence after his early release from prison, where he was jailed in January for imprisoning a male escort.
A show insider said: "Kerry would have been a huge boost to ratings. But she failed the psychological tests and we can't take that risk after what happened to Susan Boyle for example."