Kerry Katona says she is upset about being declared bankrupt, but insists it is a mistake.

The former Atomic Kitten star – who was declared bankrupt by the High Court last Thursday – told Star magazine she had the money, but the cheques had not cleared in time.

Kerry’s spokesman Max Clifford is reported to have said: “The money is there to cover the bill and they are hoping to get the order annulled. The bill will be settled this week.”

Meanwhile, The Daily Mirror claims the 27-year-old mother-of-three has checked in to a north-west London clinic to undergo breast reduction surgery.

The operations will apparently be filmed as part of Kerry’s latest reality TV show.

The former I’m A Celebrity… Get Me Out Of Here! star is said to have spent the majority of her fortune on luxury cars for husband Mark Croft. But she recently reportedly signed a new six-figure advertising contract with supermarket Iceland.

Kerry reduced her £417,000 tax bill to £82,000 but HM Revenue and Customs (HMRC) insisted last week in pressing ahead with the bankruptcy petition first issued in January.