Kerry Katona has cancelled her wedding to fiance George Kay after filing for bankruptcy for the second time.

The 32-year-old Atomic Kitten star is also giving up her £3000-a-month mansion and moving her four children to a smaller home.

kerry katona george kay

Kerry Katona and her fiance George Kay

Kerry - who was dropped as the face of payday loan company Cash Lady last week after declaring herself bankrupt - wants to sort her finances out before walking down the aisle again.

There were also plans for two TV companies to cover the lavish do, but they have since pulled out.

A source told The Mirror: "Kerry decided she could not afford the wedding.

"She is also keen not to be seen living it up and is aware that hosting a ­wedding where celebrities would be quaffing champagne would not look outrageous after the bankruptcy.

“So they have decide to wait until things improve and they are likely to get married next year.

“The TV channels pulled out because of their budgets, so without then it couldn’t really go ahead as planned.

"Then she spoke to George who was gutted but understood and has been really supportive.”

kerry katona

Kerry in the Cash Lady ads

Kerry will also be giving up her luxury, five-bedroom home near Wigan and moving her children - Molly, 12, Lilly-Sue, 10, Heidi, six, and Max, five into something a little more modest.

But despite Kerry's money woes, she's remaining upbeat, yesterday tweeting: "I love my life. Every detail may not always be perfect, but it's filled with the people I love the most, and after all what's better than that?"

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    Despite her fortune for her Atomic Kitten days and various relaity TV appearances, Kerry was officially made broke in 2008 when she failed to cough up the final £82,000 of a £417,000 tax bill. A turn as a housemate on 'Celebrity Big Brother' helped her to finally pay off her debts.

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    Martine filed for bankruptcy in in 2013, when she amassed debts of £187,000.

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  • Joe Swash

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  • Peter Stringfellow

    Peter lost a reported $20m in 1992 after a failed attempt to crack America.

  • Christopher Biggins

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  • Mike Tyson

    The boxer owed both the US and British governments $17m in taxes, $750,000 to law firms and $300,000 to limo services and became bankrupt in 2004.

  • Donald Trump

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  • Neil Morrissey

    Neil entered into an individual voluntary arrangement (IVA) after a property scheme in which he invested collapsed, leaving him millions of pounds in debt.

  • MC Hammer

    One hit wonder MC Hammer's living beyond his means meant he was $13m in debt and filed for bankruptcy in 1996.

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    In one sense, Kerry Katona's Cash Lady Pay Day Loan company ad marked a seminal moment in marketing. For the first time ever we were presented with what in literary terms you'd call an 'unreliable narrator' - in other words, financial advice from someone who confesses to being terrible at personal finance. We have no idea if it worked.

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