I did find it odd when she attempted to launch a comeback last year, especially since her voice was so much weaker than it used to be. Now we know why.The likely reason for her income being so close to her outgoings will be that she is on a re-payment plan with her current debtors. There will be known outgoings and she will have a fixed budget for personal expense each month (which she is off-course likely to over or underspend).
I find it incredible that she can be earning £13k a month in royalties/appearance fees yet no-one said to her that she might want to keep some of that aside to pay her tax bill at the end of the year. Who on earth was her accountant?
Also it is likely that all her appearance fee's and royalities are paid through a company in order to make it tax efficient. It would be interesting to understand if it is her, or her company which is bankrupt. I would imagine it is probably the company, and that she still has a sizable private wealth. Its such a loophole in the system and must be closed.
Indeed! Shame though she was a cracking singer in her time
By the way i am self employed on a lot less than £13K a month
and was advised by my accountant to become a limited company for exactly the reasons you state so you may well have hit the nail on the head there