Katona 'upset' over bankruptcy decision

Kerry Katona has admitted that she feels "upset" after being declared bankrupt last week.

The High Court issued a bankruptcy order after the reality TV star failed to pay the final £82,000 of a £417,000 tax bill.

In her first interview about the court's decision, Katona brushed off rumours of a financial crisis, insisting that her cash problems will be over by the end of the week.

"Obviously, I'm upset about it, but it shouldn't have happened. I've been promised that it will be sorted out this week," Katona explained. "Our financial adviser told us the cash was in place with the court but hadn't been cleared in time."

She confirmed: "I've been told the bankruptcy will be annulled."

Speaking to The Mirror, a source close to Katona added: "This whole episode has been quite embarrassing as Kerry is clearly not poor and rakes in a lot of money."