Thursday, 26 June 2008

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Kerry Katona told pay up or face backruptcy

Reality TV star given 6 weeks to settle unpaid tax bill

Kerry Katona was not in court yesterday

Kerry Katona won a reprieve at the High Court yesterday in her battle over an unpaid tax bill.

The reality TV star was given an additional 6 weeks to find the £157,000 outstanding on £417,000 bill dating back 4 years – or face being declared bankrupt.

Kerry had originally been given 10 weeks to pay at a hearing earlier this year.

She did not attend the London hearing, but lawyer Luke Harris explained she could not meet the full amount because of ‘changed circumstances’.

He said Kerry, 27, needed extra time to pay up – but is expecting income of £472,000 before the end of August.

‘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,’ Luke told the court.

‘She is seeking to remortgage her properties. But if the money comes there is no need.’

But the registrar rejected Kerry's bid for the case to be heard in secret.