Holley was allegedly fired when she was on her way to court to try and make a plea deal for lockdown rehab for the 26-year-old actress, reported Radar online.
The Santa Monica City attorney was willing to keep the troubled starlet out of the jail on the condition that the 'Liz and Dick' actress checked into an in-patient rehab for at least six months.
Lohan also owes Holley USD 300,000.
"Lohan has not paid anything for any of the work that Holley has done on her three new criminal charges of lying to cops, in connection with her car accident in Santa Monica last summer," a source said.
Lohan is now represented by New York attorney Mark Heller.
