Last week, The Enquirer’s gossip guy Mike Walker claimed that Lindsay Lohan was $150 million in debt. Many of you took issue with that, as you should. I think we can all agree that Lindsay is a crackhead with no sense of fiscal responsibility, and while I could believe that she’s $10 million in debt, I can’t get on board with the $150 million figure. Lindsay has probably racked up a few million in credit card debt, a few million in back-taxes, a few million in real estate schemes, and a few million in legal bills. As for the legal bill situation – many think that Lindsay dumped Shawn Holley initially because LL owed Shawn so much money and maybe, in LL’s crack-addled mind, she thought she wouldn’t have to pay Shawn if she fired her. Now that Lindsay has a new lawyer who she hates, LL will do anything to get Shawn back – even paying her bills!

Lindsay Lohan is telling friends she was clueless until a few days ago that she owed Shawn Holley a small fortune in attorney’s fees, but we’re told now that she knows she’s putting Shawn at the top of her creditor’s list.

It’s hard to swallow … that Lindsay didn’t know how much she owed Shawn. We’ve been reporting for weeks it’s in the 6 figures. Sources quite familiar with the situation tell TMZ, Lindsay owes Shawn $150,000.

It’s interesting … although Lindsay fired Shawn … our sources tell us she’s been making a full-court press for more than a week to get her back, but Shawn isn’t having it.

We’re told Lindsay has instructed her business manager to pay the tab ASAP. Lindsay is making money from appearances, endorsements and some acting gigs, but she’s been spending like an insane woman — first class plane tickets, expensive hotels, restaurants, clothes, etc. Lindsay says she’ll cut back so Shawn gets paid.

One thing that won’t go away … Lindsay still owes $130,000 in back taxes … and now she has a new lawyer — one she doesn’t even want — who will undoubtedly be racking up his own bill.

[From TMZ]

I thought the whole reason Lindsay hired Mark Heller was because he wasn’t going to charge her? Or maybe he just takes payment in beejs. In any case, Lindsay is looking to dump Heller and no other lawyer will take her, so this is basically her only option – pay Shawn and suck it up (and not in the normal way she pays her bills). Also: I bet she owes Shawn WAY more than $150,000.

Photos courtesy of WENN, Fame/Flynet.

Ugh, so much stupid Lohan drama. So, do you remember how Lindsay Lohan tried to fire her longtime attorney Shawn Holley last week? Shawn has gotten LL out of numerous scrapes, and if you’re looking for a reason why Lindsay hasn’t been rotting away in a jail cell for YEARS, it’s all because of Shawn. Maybe Lindsay just got scared with the overwhelming amount of money she owes Shawn, or maybe Lindsay’s crack-addled mind thought she was being clever, but for whatever reason, LL tried to fire Shawn and hire a new lawyer (NY-based). Shawn appeared in court last week on Lindsay’s behalf, and it seems like that appearance was Shawn’s last act as LL’s lawyer – TMZ reports that Shawn has quit Lohan now!

Shawn Holley is saying goodbye to Lindsay Lohan for good, even though Lindsay has begged her to come back on board as her lawyer … TMZ has learned.

Sources connected with the case tell us … Holley is in the process of filling out paperwork and getting the necessary signatures to officially withdraw from the case … before Lindsay’s hearing on January 30.

TMZ broke the story …. Lindsay fired Holley last week as she was on her way to the courthouse to discuss plea bargaining her lying-to-cops case. Lindsay hired Mark Heller, a New York lawyer who is not licensed to practice in California.

Sources close to Lindsay tell TMZ … Lindsay has told Holley she made a mistake firing her and wants her back, but Holley has had it with Lohan — who still owes her a ton of money.

We’re guessing Holley will never see her money, but Lindsay may have lost a lot more.

[From TMZ]

CB and I were recently talking about why TMZ seemed so personally offended by LL’s recent legal shenanigans, and CB offered a theory which I think is true – Harvey Levin is a lawyer and he likes other lawyers, and he didn’t like seeing Shawn screwed over, which is why TMZ seemed to be going overboard by declaring LL’s attempt to fire Shawn as LL’s “worst decision ever.”

In other Cracken news, yesterday TMZ claimed that Lindsay had turned down a massive offer to do Dancing With the Stars. Reportedly, DWTS offered her $550,000 to see her cracked-out trainwreck on live TV, but Lindsay told them she’s going “to stick to films” because… you know, she thinks she’s Marilyn Monroe/Elizabeth Taylor. Radar has a follow-up today which basically says that Lindsay refused the offer because she knew she wouldn’t be reliable enough to do a live show:

Lindsay Lohan was reportedly offered half a million dollars to appear on the hit show Dancing with the Stars, and RadarOnline.com has exclusively learned that LiLo turned the offer down because her team was terrified of her participating in a live show!

The cash-strapped 26-year-old troubled actress definitely needs the career boost, after her much-panned Liz & Dick and The Canyons roles, but her advisers didn’t think she could handle DWTS.

“Lindsay has been a mess on movie sets lately. She doesn’t show up on time, she keeps everyone waiting and so her team decided that there was no way that she could handle the pressure of a live show like Dancing with the Stars.”

With two live shows a week, as well as months of daily practices, Lindsay would have to be very disciplined, and her team didn’t think should could make that major commitment to ABC.

“Lindsay operates on her own schedule, and there would be no way that anyone could guarantee that she would be on time for rehearsals or the shows, and they’re live so it would be horrible if she didn’t show up!”

Even though the former Disney star would be a ratings draw, the people around her realized that she would be too much of a risk for a reality show.

“A live show and Lindsay? That would not be smart!”

[From Radar]

While I agree, it would be a total disaster if she had signed on, I don’t really buy this story. It just sounds too shockingly self-aware on Lindsay’s part. The reasons given – she’s a cracked-out mess, she wouldn’t be on time, she would screw up a live show – are the reasons why DWTS producers would reject her, even if her trainwreck would be must-see-TV.

Photos courtesy of WENN, Pacific Coast News.

Lindsay Lohan tried to fire her long-time lawyer Shawn Holley yesterday. It was complicated – you can read my recap here. Basically, Lindsay owes Shawn more than $300,000, so of course LL thought this would be the perfect time to get a new lawyer, because she heard it through the crackvine that lawyers don’t care about being paid if they get fired by their clients. After TMZ was all “LL is so dumb for firing Shawn and hiring this other NY dude,” Lindsay was all “OMG, I didn’t mean to fire Shawn!” And then there was another interesting wrinkle – Shawn had been working with prosecutors on a plea deal that would have involved no jail time and six months of crack-lockdown rehab. I personally think that deal probably had more to do with Shawn’s dismissal, don’t you?

Anyway, all of this came just hours before Lindsay was due to make a plea at her hearing today. Lindsay wasn’t actually going to make the appearance in person, but Shawn was supposed to come to court and offer the plea on her behalf, only you know, Shawn got fired. But Shawn’s a pro so she showed up anyway:

Shawn Holley pulled off another miracle — pleading “not guilty” on Lindsay Lohan’s behalf today in court … despite Lindsay firing her yesterday.

When the judge asked if she was still representing Lindsay — Shawn replied, “At this point, yes” … but it’s unclear what that means since she got a letter saying she was fired yesterday. Lindsay has since hired another lawyer in New York, Mark Heller.

The judge was understandably confused — and Shawn said, “The representation issue will be nailed down.”

Consider it another bullet dodged by Lindsay — it was likely a bench warrant would have been issued for her arrest had Shawn not stepped in to help her.

A pretrial date has been scheduled for January 30th. Lindsay has been ordered to appear.

[From TMZ]

Ah, I miss the days when judges would actually order a bench warrant for Lindsay’s ass. Remember that? When was that? Like, 2010? Lindsay was partying at the Cannes Film Festival and she “lost” her passport so she couldn’t make it home in time for a court date and the judge was all “Bench warrant for the crackie!” Memories.

Anyway, it doesn’t sound like Shawn is too jazzed about this situation. Poor Shawn. Do you think she realized that she’s never going to see that $300,000?

Photos courtesy of WENN.

You know how Lindsay Lohan is made of crack-teflon? Like, legally speaking. She’s been charged with so many crimes and if she was an African-American man, she would have already hit Three Strikes. It’s not just “white privilege” or even “the LA judicial system bending over for Hollywood”. There’s something else at work – and that something is Lindsay Lohan’s long-time attorney Shawn Holley. Shawn has kept Lindsay out of so many scrapes, Shawn has kept her out of jail so many times, and Shawn has outright lied for Lindsay so many times, I thought their crack-partnership would last forever. But according to TMZ’s sources (Dina), Lindsay just fired Shawn. WTF?

Lindsay Lohan has made one of the worst decisions of her life … firing Shawn Holley — the lawyer who has kept her out of jail multiple times — and hired a New York lawyer, who was suspended from practicing law for 5 years back in 1994 … sources tell TMZ.

Lohan is facing criminal prosecution in both California and New York. Attorney Mark Heller is repping Lindsay in the NYC assault case. Shawn Holley was repping LiLo in L.A. in her multiple criminal cases — most recently the car crash where she allegedly lied to cops.

It’s a stunning development — given that Holley has taken heat for being too effective, keeping Lindsay out of the pokey in the jewelry heist case as well as several probation violation cases. And she’s almost magically made some criminal investigations disappear.

Sources connected with the L.A. prosecution of Lindsay tell TMZ … Heller — who according to the New York Times has been called a “menace to the public” by some lawyers — sent a letter to Holley saying he was now repping her on all criminal matters.

Bad timing on Lindsay’s part, because sources tell us … Holley was literally on her way to the courthouse when Heller sent his letter — she was trying to negotiate yet another sweet settlement for Lindsay in the lying-to-cops case.

Calls to Holley were not returned.

[From TMZ]

I have several working theories – Bedhead helped!

Theory #1: TMZ might have gotten it partially wrong – Lindsay is keeping Shawn for her LA legal issues, and LL hired a NY lawyer for her NY legal issues. The Cracken just seems like the kind of mess who needs lawyers on both coasts, right?

Theory #2: TMZ is dead-on and Lindsay really is this stupid, and Shawn just got played by a dumb crackhead.

Theory #3: Shawn was looking for a way out of their crack-partnership and this story is just Lindsay’s “spin” on a bad situation. Keep in mind – Lindsay still owes tens – if not hundreds – of thousands of dollars in legal fees to Shawn. And all of Lindsay’s accounts have been frozen and Shawn is not getting paid. Maybe she’s cutting her losses, you know?

Confession time… I wrote all of that ^^ last night, and this morning there’s a slew of new info. Let’s do some highlights!

*Lindsay claims “she never authorized her New York lawyer to fire Shawn Holley and never instructed him to send her a letter of termination”. Except for the fact that her NY lawyer made her sign the termination letter. In Lindsay’s defense, she was probably high as a mofo when she did that. So Lindsay is telling everybody that she loves Shawn and she wants Shawn to come back onto her legal team, Shawn is her second mother (ha), etc.

*Before she was fired, Shawn Holley was trying to work out a plea deal for Lindsay in which LL would have avoided jail time by agreeing to “lockdown rehab” for six months. Shawn was literally on her way to meet with the prosecutor and the judge to work out the deal, but Shawn never made it because… you know, crackie. There’s a court appearance (in LA) today.

*Radar says that I was right about one thing – LL owes Shawn more than $300,000 in legal fees. Good luck with that, Shawn. LL apparently hasn’t made any payments in six months. Crack disaster! Oh, and LL’s nnew lawyer isn’t charging her any fees (or it’s a reduced fee) because of the publicity.

Photos courtesy of WENN.