Dorit could go to JAIL! CLINK!

Dorit Kemsley and her hubby P.K. are embroiled in a nasty lawsuit with their former Beverly Beach business partner who claims the couple owes him $1.2M on a business loan they never repaid.

The issue was raised on the Real Housewives of Beverly Hills reunion but Dorit explained it away by saying the two parties were in mediation and that "it's in the lawyers' hands."

Well apparently a settlement doesn't happen because the couple have been ordered to appear in court Sept. 5 with bank records and other information about their assets and if they don't, there judge could issue a warrant for their arrest!

Dorit also admitted on Bravo that she froze her own bank accounts -- which isn't a "thing," actually. Someone froze them for her! That means the supposed creditor, former business partner Nicos Kirzis, could collect on the couple's personal assets. That's some scary sh*t! Dorit ALSO admitted on the show that she will be selling her home and possibly moving closer to Kyle's neck of the woods. Well Kyle's got an amazing home -- Smokey Robinson's old estate -- but it's in the San Fernando Valley, were real estate's a bit cheaper than in tony Beverly Hills where Dorit and P.K. currently reside. In other words, Dorit's about to take a step DOWN ... and while some of the homes near Kyle are amazing, celeb-worth properties, others are pretty average. Not being stuck up, but they're not mansions. Which means the Beverly Beach owners may be downsizing in order to satisfy some debts.