Kerry Katona declared bankrupt after failing to pay £82,000 tax bill

Reality TV star Kerry Katona was dealt a major blow today as she was made bankrupt at a High Court hearing after failing to pay an outstanding tax bill.

The former Atomic Kitten star had managed to reduce her £417,000 tax bill to £82,000.

But HM Revenue and Customs (HMRC) insisted on pressing ahead with the bankruptcy petition, which was first issued in January.

Mr Registrar Nicholls agreed to make the order after giving 27-year-old Katona until 1pm today to come up with the balance.

Kerry Katona, with husband Mark Croft, was made bankrupt after failing to pay her outstanding tax bill

But when today in court, Luke Harris, representing the reality television star who was not in court, asked the registrar to put the matter back, claiming the funds were available but cheques had not cleared.

Mr Harris said as soon as the money was ready, it would be brought to the court and given to Mike Thomas, the lawyer representing HMRC.

But just before 1pm today, when the registrar called the parties back into the court and Mr Harris said he was 'not in a position to assist further'.

Mr Registrar Nicholls had given mother of four Kerry until today to find the sum in a case that has already been before the court four times.

Miss Katona brought matching luxury cars for herself and her husband despite her looming tax bill

The bankruptcy declaration is the latest bad news for the I'm a Celebrity winner, who has been treated at The Priory for depression.

The star is going through a bitter custody with ex-husband Brian McFadden.

Katona and McFadden, who were married for two years but split in 2004, have two daughters Molly, six, and Lilly-Sue, five.

She has also had to put up with claims that her husband Mark Croft has cheated on her.

But despite her recent money troubles, Ms Katona still splashed out on a £115,000 Lamborghini for her husband last year.

And at Christmas Kerry was reported to have treated him to a new £12,000 bike, despite the fact he already had a £10,000 Ducati.

It has also been reported that as well as being threatened with bankruptcy by HMRC over the unpaid tax from 2004 to 2006, the mother of four owes £73,000 tax from 2007.

Miss Katona is said to earn £750,000 a year as the face of supermarket chain Iceland and £400,000 a year as a columnist.