01 September 2023 , 14:38
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Kerry Katona has opened up about being declared bankrupt for the first time, admitting she had no idea what it was.
The former Atomic Kitten songstress was first declared bankrupt at the High Court in London on August 21, 2008, after she failed to pay £82,000 of a £417,000 tax bill. In 2013, she filed for bankruptcy again at the County Court in Wigan but she now claims it was down to a former accountant, David McHugh.
Kerry, 42, has been praised in the past for being open about her life, including the highs and the lows such as a struggle with an addiction to cocaine. Now the star has shed light on her financial situation and says she had no idea what was happening behind her back.
Speaking on the On a Mission podcast with Ellie McKay, the Warrington-born star said: "My first bankruptcy, I was devastated, I couldn't believe it. I didn't even know what bankruptcy was – it was my accountant who stole my money, he got put inside for it but I never got my money back.
Kerry Katona has claimed she had no idea an accountant was responsible for her bankruptcy (On a Mission/Youtube)"A lot of people just thought 'Oh she's sniffed it up her nose', I could afford to buy all the coke I wanted, I could afford to buy all the cars I wanted, I was a millionaire but that wasn't the case. This account had been sifting my money and sending me letters saying 'That's been paid' and none of it had been paid."
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The mum-of-five continued of her former accountant: "I went round, I threw hot coffee in his face, I punched him, got thrown in the cells and I begged the police officer, I said 'Please raid him', anyway, he got raided and we found in his ceiling and on Companies House he had KK Media, KK Holding, KK Entertainment, TSB, Lloyds bank all in my name – I had nothing to do with it and I lost everything!"
Kerry was accused of hitting her former accountant, David McHugh, and smashing up his office in her hometown of Warrington, while allegedly yelling: "You've ruined my life." Speaking previously to the Daily Star, McHugh said: "She was screaming, 'You're a f*****g liar', she pushed all my papers across the desk and a cup of hot tea went flying over me."
The former Loose Women star was subsequently arrested for the assault but was given a caution by Cheshire Police.
In November 2011, David was jailed after admitting to participating in fraud, estimated to be worth around £4m. McHugh had previously been banned from being a company director until 2010 and in 2004, spent time behind bars for committing fraud after setting up a company which would allow firms to recover debts.
McHugh and Katona met when she became the face of Pink Ladies, a female-only taxi firm, and he took on her accounts. He was also known to use the name David Williams, Cheshire Police have previously said in an appeal.
Despite her previous financial woes, Kerry has come out on top and now has millions sat in the bank thanks to her OnlyFans pageDespite her previous financial worries, which left her worried that she wouldn't be able to be able to afford her kid's school uniforms, the star has turned her life around now. Kerry now has millions sitting in her bank account and drives around in a lavish Lamborghini worth a whopping £240,000. The television personality credits the raunchy site OnlyFans for allowing her to become financially secure once more.
But while she may have a hefty bank balance that some could only dream of, money isn't everything for Kerry. Speaking to the Mirror, she said: "I love my job, there's no two days the same, I'm not stuck behind a desk – I'm so lucky and grateful. I get asked to do some amazing reality shows, you wouldn't normally do and I think 'How lucky am I?' I might have all this money and it gives me options to create great memories."
She continued: "That's where my riches are and the adventures that I have on these reality shows. None of this [financial wealth] means anything, I can't take it when I die – when I'm on my deathbed, I have the memories and the images and the feelings of the adventures that I created with my family."