This is the second time in five years that Kerry has filed for bankruptcy, despite her appearing to be back on track after reforming with Atomic Kitten for The Big Reunion.
According to reports, Kerry filed a petition under the name Kerry Jane Elizabeth Katona at Wigan County Court yesterday (2 July).
Cash Lady has since released a statement, saying: "We were sorry to hear about Kerry's current financial situation. Clearly, as a business, we are committed to responsible lending, so it is with sadness that we will not be able to continue using Kerry as the face of Cash Lady."
Kerry has hinted at her unfortunate situation on Twitter, telling fans: "No matter what life throws at you, hold your head high and know you've done your best."
Yesterday morning, she had also written: "Morning Twitter! Hold your head high and be proud, never be ashamed! Always try your best and believe in yourself! Have a great day xxx"
Today, however, Kerry tweeted: "Morning Twitter...what a miserable bloody day!! Oh well, turn that frown upside down and go and dance in the rain :)) xxxxx"
Morning twitter! Hold your head high and be proud, never be ashamed! Always try your best and believe in yourself! Have a great day xxx— Kerry Katona (@KerryKatona7) July 2, 2013
In 2008, Kerry was declared bankrupt after failing to pay £82,000 of a £417,000 tax bill. But the mum-of-four picked herself up and threw herself into work in an attempt to improve her finances.
After briefly signing up to Peter Andre's management, Kerry starred in her own documentary called Kerry Coming Clean. She then went on to film two reality series', called Kerry Katona: The Next Chapter, before being selected as a celebrity skater for Dancing On Ice. In 2011, she appeared in Celebrity Big Brother.
Earlier this year, Kerry reformed with Atomic Kitten bandmates, Natasha Hamilton and Liz McClarnon, and appeared alongside other bands from times gone by in ITV2 show The Big Reunion. The bands then took part in an arena tour and are due to wow the crowds again in December.
Last week, Kerry, who is engaged to George Kay, flew to Dublin and took to the stage alone for a solo gig.
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