Gretchen Rossi won't be modeling jailhouse jumpsuits anytime soon.

The Real Housewives of Orange County star avoided arrest this morning by showing up to court, where she could finally face off against self-described former lover Jay Photoglou, who's suing her for libel and slander. She even brought her checkbook to pay him the nearly $24,000 in fees she owes.

But the case involving the 32-year-old reality television personality was extended until Friday after Rossi's attorney requested to put up a bond rather than cut a check because a new development came to light.

Lucky girl…

Apparently, Photoglou owes nearly $30,000 to the IRS.

Rossi's lawyer, Gregory Brown, told Judge Corey S. Cramin that the 40-year-old man shouldn't see a penny of Rossi's payout. Instead, the dough should go directly to the IRS.

Regardless of who gets it, if she doesn't pay, Gretchen faces a judgment debtor examination in which Photoglou gets to examine her finances.

In other words, unless Brown shells out, she'll have to cancel whatever manicure or lunch plans she has for tomorrow.

Gretchen donned a black and white dress to court and brought her boyfriend-manager, Slade Smiley.

Photoglou alleges he and Rossi had a romantic relationship during Rossi's engagement to Jeff Beitzel, who passed away in late 2008 from cancer. Rossi has denied any such hookup.

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Was Gretchen as appropriately dressed as the majority of characters in our Court Appearances gallery?

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