Last week, TLC successfully blocked Gosselin from making any profitable public appearances, causing the star’s livelihood to take a serious hit.
"Jon's in pretty serious financial trouble because his plan for making money was shut down in court,” the insider said. "He has warned his lawyers that he can't pay them and if he doesn't succeed against TLC, he will have no funds. He's even gone so far as to say that if they want to be paid, they will have to sue him."
Gosselin’s bills have been stacking up since his claim to fame, “Jon & Kate Plus 8,” was canceled this year in part to the drama from his pending divorce with his estranged wife and former co-star, Kate.
On Oct. 13, a judge ordered Gosselin to hand back $180,000 that he had withdrawn from the couple’s joint account. A few days later, TLC filed a suit against Jon for violating their contract by making paid and unpaid TV appearances on various media outlets without the network’s permission.
The embattled dad has since hired a father/son legal team recommended to him by Michael Lohan, another controversial dad in the media.
"Mark and Mike Heller were brought in because Michael Lohan was involved, and he convinced them to join Jon's team early on in the summer," the source said. "Lohan wanted to latch onto Jon and involved many people he knew. He convinced them Jon was going to have a successful career after the show."
The insider added that Gosselin, 32, is making no effort to find a legitimate job as he sinks deeper into debt.
"It's a good thing Kate Gosselin has been put in charge of the family funds that provide for the couple's eight children," said the spy. "She is the responsible parent."
Jon’s legal team have produced a written statement denying that their client is in the hole.
"Jon Gosselin’s New York lawyer has the highest regard for Jon Gosselin and will continue to work for Jon for as long as he requires their services," it reads. "The Hellers have no concern relevant to being paid by Jon for their services and see no circumstances under which they would ever sue Jon."
"This past year, Jon Gosselin was the most photographed man in America and appeared in more magazines than any other reality TV star," it continues. "Wherever he goes, there is an outpouring of love for him from his fans. And there is no doubt that he has a bright and shining career ahead of him."
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