Kerry Katona faces bankruptcy within just 30 days after failing to pay a huge tax bill.

Pregnant Kerry missed a £380,000 instalment on a £1.2million debt.

And The People has learnt papers have now been served on the troubled ex-Atomic Kitten singer giving her a month to cough up.

A source said: "It's reaching crisis point - unless she acts quickly she will be declared bankrupt.


"She's forking out for cars and a flash lifestyle, yet thinking she shouldn't pay taxes like the rest of us."


Kerry was handed the £1.2million bill last year.


But the mum of three claimed she could not pay it in one go - despite earning £2million a year from ads, books and magazine deals.


She and cabbie husband Mark Croft, 37, drafted in insolvency advisors, saying they had huge credit card bills and thousands of pounds of other debts.


Tax chiefs agreed to spread the payments - and Kerry handed over £380,000 as a first instalment. But the second whack is now overdue.


Papers were served last week to her £1.5million mansion in Wilmslow, Cheshire, summoning her to a second hearing.


The source said: "The papers basically say pay up in 30 days or you will be declared bankrupt."


Last month, though, the star proved she was far from skint by buying a new £127,000 Ferrari for Mark.


And her Christmas gift to him a month earlier was an £11,000 Ducati superbike.


The couple also have a £135,000 Lamborghini, a £100,000 Aston Martin, an £80,000 Porsche 911 and a £55,000 Mercedes.


In September, Kerry paid £50,000 to fly family and pals to Italy to see her renew her wedding vows to Mark.


She has also splashed the cash on partying. And she's still paying out in her ongoing custody battle with her Westlife ex-hubby Brian McFadden over their daughters Molly, six, and Lilly-Sue, five.


But her earnings are just as high.


Ads for Iceland stores are worth £750,000 a year - though bosses have now ditched Kerry to go for a different image.


She gets £400,000 a year from a magazine column.


And she has more cash coming in from an autobiography, an advice book and a novel.


Kerry has also signed up for an MTV show about her life called Crazy In Love.


A pal said: "She is useless with money. She has no concept of saving and spends whatever she feels like.


"It's not on - she needs to get real."


But there are signs Kerry IS trying to economise.


A bash after baby Heidi's christening in Warrington was a £13-a-head buffet - at a local curry house.


A spokesperson for Kerry said: "She has buried her head in the past over this. She has paid out £250,000 in unpaid tax and now intends to make a further two payments before the deadline."



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