Lindsay Lohan is at her second home today (the courtroom) facing the judge on her probation and grand theft cases and the rumor is that the Judge Keith L. Schwartz is set on making Lindsay do time. According to TMZ, the plea bargain they are trying to get her to accept is rumored to be her accepting jail time for the probation violation & three years felony probation for the grand theft case. Along with that though…if she gets in trouble during the three years, she’ll go to state prison.

Lohan insists that she is innocent and apparently will not be accepting any plea bargain and will go to trial to attempt to clear her name on this matter. “Ms. Lohan maintains her innocence, and now that I’ve seen the police reports, I believe the case is entirely defensible,” her lawyer said in an interview with CNN last week. “Having said that, we will entertain a discussion concerning a plea if it means no jail so that she can move forward with her recovery and her career.”

The hearing was set for 8:30am this morning and TMZ is live inside and outside the courtroom. Lindsay just showed up at about 8:32am. (You can watch a live feed on their site and listen to the paparazzi argue with each other about who got their first one telling another to stop smoking – LOL.) Yup, helicopters above and everything. I’ll update you as the story progresses.

UPDATE: The judge told Lindsay, if she pleas with him, there is no question of jail time, but only a question of how long. Lindsay maintains her innocence and will now go to trial.