Kerry KatonaKerry Katona has said she thinks the bankruptcy declaration made against her this week will be annulled.

The former Atomic Kitten star was declared legally bankrupt by the High Court in London last week after she failed to pay outstanding tax demands. The ruling allows her house and other non-essential assets to be sold to cover her debts with HM Revenues and Customs and any other creditors. But all along Kerry and her legal team insisted she was just waiting for cheques and payments to clear from work she had completed.

She has now told Star magazine: “Our financial adviser, who takes care of all our money affairs, told us that the cash was in place with the court but hadn’t been cleared in time.

“I’ve been told the bankruptcy will be annulled.”

At the time of the bankruptcy declaration, Kerry owed more that £82,000 in tax, the final instalment of a £417,000 bill.