Heather Mills is set to sell her £3 million ($6 million) home to pay her huge legal bills.
The former model, who is currently embroiled in a bitter divorce battle with Sir Paul McCartney, owes £1.5 million ($3 million) to law firm Mishcon de Reya and could lose her property in order to settle the debt.
A source said: "Heather is telling friends that relations have broken down so badly between her and her former lawyers Mishcon de Reya she will have to sell the house Paul bought her to pay the legal bills. Mishcon de Reya are poised to serve with a writ for the cash."
The source added to Britain's Sunday Mirror newspaper: "This Christmas she has been facing up to losing the house."
Paul bought Heather the nine-bedroom property earlier this year because it is close to his own East Sussex home and he wants regular access to the couple's four-year-old daughter Beatrice.
Heather, 39, reportedly plans to put the house up for sale in January.The animal rights campaigner - who could be awarded more than £30 million in her divorce settlement - claims financial strain forced her to part ways with Mishcon de Reya.
Heather's representative Michele Elyzabeth said: "It was agreed between them both that she would suspend her representation from the firm due to financial reasons and that she was capable of representing herself."
However, Mishcon de Reya allegedly ditched her after she viciously attacked Paul in a series of UK and US TV interviews.
Heather and Paul's divorce battle is not expected to be settled until at least February.
Meanwhile, Heather and Paul reportedly had a blazing row on Boxing Day(26.12.07) after the musician brought Beatrice home an hour late.
A source said: "They arranged for Paul to have Beatrice between 2pm and 5pm but he didn't arrive back to Heather's house until 6pm - he didn't even ring to say he was running late. Heather thought it was very rude and inconsiderate."
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