Kerry Katona has cancelled her wedding and is moving house after being declared bankrupt… again!

MTV Europe Music Awards, Liverpool Echo Arena, Liverpool, Britain - 06 Nov 2008

I would imagine that officials in bankruptcy courts up and down the country are by now so familiar with singer and reality TV star Kerry Katona that they invite her to their office Christmas parties…

And officials in a court in Wigan were no doubt stamping frequent flyer points to Kerry’s card this week as she was yet again declared bankrupt after losing her role as the ‘face’ of Cash Lady.

Of that, the Sunday Mirror reports that recidivist over-spender Kerry is now trying to sort out her latest financial mess by postponing her wedding to fiancé George Kay, and by moving into a smaller house.

The paper states, “Kerry sat down with ex-rugby league player George and the children – Molly, 12, Lilly-Sue, 10, Heidi, six, and Max, five – to tell them they would have to give up the £3,000-a-month rented home they share in Haigh, near Wigan, because of the bankruptcy.”

After Tuesday’s court hearing Kerry – who recently starred on The Big Reunion – said, “I’m embarrassed by all of this…

“People will think I’ve been an idiot again although I’ve tried to be sensible.”

She added, “I am determined to get through this, and we will be OK. George has been my rock, really supportive.”

kerry katona, george kay

A source close to Kerry added, “Kerry decided she could not afford the wedding.

“She is also keen not to be seen living it up and is aware that hosting a wedding where celebrities would be quaffing champagne would not look outrageous after the bankruptcy.

“So they have decided to wait until things improve and they are likely to get married next year.

“The TV channels pulled out because of their budgets, so without then it couldn’t really go ahead as planned.

“Then she spoke to George who was gutted but understood and has been really supportive.”

Another friend of former I’m A Celebrity winner Kerry said that she was “extremely upset” when Cash Lady dropped her as the face of the company.

The friend said, “That was the worst blow. It was a key plank of her income which she is now losing.”

kerry katona 2

Finally, the insider added, “She has work coming up and will soon be back on an even keel financially.

“She knows she has to be more careful in future to avoid getting into this sort of mess again.”

Here’s a reminder of a recent interview with Kerry…

Lynn is an editor and writer here at Unreality TV and is a trained psychotherapist and the author of two books. She's addicted to soaps, period drama and reality TV shows such as X Factor, Big Brother, BGT and I'm A Celeb.