Dr. Phil’s Bankruptcy Case Keeps Getting Weirder
A bankrupt television network started by clinical psychologist-turned-TV personality Phil McGraw has ruled that Dr. It was decided that Phil would be liquidated and sold after it was discovered that he had attempted to destroy evidence via incriminating text messages. The October 28, 2025 decision by Judge Scott Everett, the U.S. bankruptcy judge for the Northern District of Texas, ruled that Merit Street Media Inc., founded by McGraw, This means that your Chapter 11 bankruptcy filing will be converted to a Chapter 7 liquidation. That is, unless Everett’s decision is overturned upon an appeal, which a spokesperson for McGraw’s Peteski Productions claims is coming soon.
Court records revealed that McGraw deleted text messages in which McGraw said he was filing for bankruptcy in order to “erase” any monetary claims and interest he had in Merit, which later found discovery and that of his former partner Trinity Broadcasting Network (TBN), as well as Professional Bull Riders (PBR), which has a $181 million claim related to missed payments for bullfighting content.
Normally Chapter 11 is used by businesses to reorganize and own. Companies come back to life after bankruptcy. But Judge Everett, who said he had not seen such a case before, said Merit Street Media was “dead as a doornail” and should be liquidated and sold under a board of trustees “so that creditors can have confidence that the process will proceed in a fair and impartial manner.” Entertainment Weekly).
Read more: The Real Reasons Why Sears Gone Bankrupt
Merit Street Media firings and lawsuits
Phil McGraw with Professional Bull Riders CEO Sean Gleason. PBR later joined TBN in a countersuit against McGraw and his production company. – Click Thompson/Getty Images
In April 2024, Phil McGraw, known for his syndicated advice show “Dr. Phil” that aired on CBS for 20 years, partnered with Trinity Broadcasting Network to launch a new cable channel called Merit TV, airing “Dr. Phil Primetime,” “Crime Stories with Nancy Grace” and several news programs. Among Merit TV’s original content was McGraw’s one-on-one interview with President Donald Trump. went bankrupt several times and then recovered) and embedded himself with ICE officials during protests in Chicago and Los Angeles.
However, as of August 2024, the company laid off 38 of its 100 employees. Another 40 employees were laid off during the summer holidays in mid-2025. At that time, Merit TV was nothing more than a stagnant channel showing reruns and infomercials. Finally, in early July 2025, Merit Street filed for bankruptcy, claiming between $100 million and $500 million in assets and liabilities. Merit also sued TBN, alleging that the network failed to provide national distribution and other services and was unable to cover $100 million in costs. TBN announced that it invested 100 million dollars in Merit TV, and McGraw announced that it would produce 160 90-minute Dr. Phil filed a lawsuit against McGraw and Peteski Productions, alleging that they failed to honor a 10-year, $500 million contract that included production of his show and failed to deliver the advertising revenue and product integrations he promised.
Dr. Phil denies destroying evidence
Phil McGraw leaves the White House podium as President Donald Trump speaks in May 2025. -Andrew Harnik/Getty Images
Trinity Broadcasting Network also claimed that Phil McGraw acquired a majority stake of 70% of Merit Street Media in August 2024 after falsely claiming that he could raise $425 million from family and friends. Accordingly court documentsTBN also alleged that McGraw formed a new company, Envoy Media, the day before the Chapter 11 lawsuit, with the goal of “acquiring key employees and assets at Merit Street for the benefit of McGraw and Peteski.” Hollywood Reporter He released that McGraw testified in court that the claim that the Chapter 11 filing was a ploy to spin off the TV channel to Envoy Media was absurd, and that “I’m doing everything I can to keep Merit running.” McGraw later added: “I didn’t make the decision to file for bankruptcy. I surrendered.”
A spokesperson for Peteski Productions shared in a statement that Judge Scott Everett’s decision stemming from the partially deleted text messages will be appealed. “We take great exception to the court’s improper allegations of alleged destruction of evidence, which simply did not occur,” the spokesperson said (via Fox News). But Chapter 7 bankruptcy can be positive here given the failed network and lawsuits.
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