Bankrupt reality TV star forced to sell £1.25m home

Bankrupt reality TV star forced to sell £1.25m home


Better known for her car-crash celebrity lifestyle, documented through reality TV series and glossy magazine spreads, news has now emerged that Kerry Katona has been forced to hand her mansion over to a property recovery company to pay off her sizeable debts.

The 30 year-old former winner of I’m A Celebrity... has seen her seven-bedroom Cheshire home handed over to property recovery specialist CDP Corporate as part of her bankruptcy proceedings.

The mum-of-four bought the £1.25 million property four years ago and is expected to make a loss on it, according to a report in the Sunday Mirror newspaper.

James Parker from CDP Corporate confirmed that the company has been retained by Deloitte, the trustees in Kerry Katona’s bankruptcy, to sell the property.

Branding reports that the firm has been instructed to sell the home as quickly as possible as ‘inaccurate’, he said: “We have been instructed to recover as much as possible, although I wouldn’t like to say whether we’ll be able to recover the full amount.

“So far we’ve had 15-20 enquiries, from a broad spectrum of people including property developers and investors.”

Asked whether the star was living in the property at the time, Mr Parker said: “She hasn’t lived there for at least six weeks; I think she’s moved down South.”

It is now thought that the reality TV star is renting a seven bedroom barn conversion in Surrey, which costs around £3,500 a month in rent.

Having been declared bankrupt in August 2008, when she failed to pay the final £82,000 of a staggering £417,000 unpaid tax bill, it was later discovered that she and her ex-husband, Mark Croft, spent £10 million in five years.

At one point, her fortune was estimated to stand at £6.8 million, but after a series of luxury car purchases, shopping sprees, and a reported cocaine habit to fund, this sum was severely diminished.

Her ex-husband has even gone on record to say that he ‘bled her dry’ during their ill-fated marriage.

Kerry’s agent, Claire Powell, told the Mirror: “We’re working hard to unravel the financial mess surrounding her.” 

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