Kerry Katona

Kerry Katona

Kerry Katona has been dropped as the face of a payday loan company after filing for bankruptcy for the second time.

The reality TV star - who was declared bankrupt in 2008 - has been axed by Cash Lady due to her "current financial situation" after the Atomic Kitten singer filed a petition under the name Kerry Jane Elizabeth Katona at Wigan County Court on Tuesday (02.07.13), the Insolvency Service confirmed.

A spokesman from PDB UK, which trades under the name Cash Lady, told This is Money: "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.

"We enjoyed working with Kerry a lot, and we wish her all the best in her future endeavours."

The news comes shortly after the mother-of-four took to Twitter to encourage her 256,000 followers to be proud of their lives regardless of the outcome.

In a post yesterday, she wrote: "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.

"No matter what life throws at you, hold your head high and know you've done your best!! :-) xxxx (sic)"

Kerry's Cash Lady advertisement was banned by the advertising regulator earlier this year for suggesting debt might help to fund a celebrity-style life as the 32-year-old star referred to her own financial issues in the clip.

In the ad, she said: "We've all had money troubles at some point, I know I have. You could see your bank and fill in loads of forms, but is there an easier way to get a loan ... So if you need extra cash go to www.cashlady.co.uk. Fast cash for fast lives."

Kerry was first bankrupt in August 2008 after failing to deliver the final £82,000 of a £417,000 tax bill. But it seemed as though she was back on track after starring in 'Celebrity Big Brother' and earlier this year she appeared in 'The Big Reunion' to reform Atomic Kitten with Liz McClarnon and Natasha Hamilton.