Lindsay Lohan Is Talking Plea Bargain

3/4/2011 10:00 AM PST

Lindsay Lohan Is Talking Plea Bargain

Lindsay Lohan's lawyer and the prosecutor have been trying to hammer out a plea bargain but have hit a wall, so now they're having a powwow with the judge to break the stalemate.

Sources connected to the case tell TMZ ... Shawn Holley has been speaking with Danette Meyers about copping a plea in Lindsay's felony grand theft case -- the whole necklace thing -- but Meyers won't budge on six months in jail.

So ... we've learned Holley and Meyers will go to court next week and meet with Judge Keith Schwartz in his chambers.  We're told Holley will ask the judge what sentence he'd hand down if Lindsay pleads guilty or no contest. 

Sources familiar with the case and Judge Schwartz believe His Honor would probably go for a three-month sentence.

Our sources say both Meyers and Holley believe Lindsay will only do 20% of the actual sentence because of overcrowding.  So, if Judge Schwartz gave Lindsay three months, she'd only serve 18 days.

Judge Schwartz is known as a settlement judge, so it's likely a deal can be struck ... IF Lindsay's willing to accept reality -- that she's going to do some jail time, no matter what.

Stay tuned