Katona given bankruptcy reprieve

Kerry Katona has until August 7 to pay off a tax bill and avoid bankruptcy.

Deputy High Court bankruptcy registrar Middleton gave the ex-popstar six weeks to find £157,000 to settle the remainder of her £417,000 tax bill.

Katona's representative Luke Harris told the court that she could not make the payments at present due to "changed circumstances".

He said: "She had not been able to earn the money (at the time of an earlier court hearing) but on this occasion, she has earned it."

Katona is reportedly expecting to earn £472,000 before the end of August.

Harris added: "She's also strenuously seeking to remortgage her properties. But if the money comes in there is no need. I would ask for one final indulgence by the court."

HM Revenue & Customs representative Henderson Collymore said the organisation did not want any further delays and was seeking a bankruptcy order.