Dr Phil's company tried to file for bankruptcy despite personal $400 million net worth
A judge has denied Dr Phil's attempt to file for bankruptcy for his media start-up Merit Street Media.
Despite having a reported $400 million (£305 million) net worth, the legendary TV presenter, 75, still felt the need to file for Chapter 11 for the company he founded back in 2024.
Merit Street Media, the television streaming network, was known for showing Dr. Phil Primetime, as well as reruns of Dr. Phil and Steve Harvey.
In July 2025, however, the company filed for bankruptcy after getting caught up in a legal battle with its partners, the Trinity Broadcasting Network (TBN), Merit Street alleged a breach of contract, while TBN countersued and alleged fraud.
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Judge Scott Everett ruled that Merit Street must, instead, move to Chapter 7 liquidation, meaning its assets will be sold to repay creditors.
Everett accused Dr Phil, whose real name is Phillip Calvin McGraw, of a lack of transparency about the company’s financial collapse, adding that it was 'dead as a doornail' when bankruptcy was filed.
The judge also found that Dr Phil deleted text messages revealing so-called plans to favour certain creditors, calling the case 'an anomaly'.
McGraw planned to pay 'favoured creditors and not pay disfavoured creditors, as his own texts show that he wanted to do', Everett claimed.
Meanwhile, Dr Phil’s representatives strongly denied destroying evidence, saying they would challenge the ruling.
A spokesperson for his production company, Peteski Productions, told the Hollywood Reporter that the decision will be appealed.
"We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen," they said.
"We will not let this stand given all that Dr Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties and to resolve this unfortunate situation.
"Today’s ruling found that Dr. Phil became the sole director of Merit Street long after the company became overwhelmed by debt thanks to Trinity Broadcasting’s mismanagement.
"Dr. Phil is proud of his efforts to help Merit Street through this process but is also pleased that he can now devote his time and energy to his new network, Envoy."
McGraw is said to own all of his show content and apparently pays CBS a sum in exchange for a cut of the advertising revenue, according to Celebrity Net Worth.
You've got to be of a certain age to remember when Dr Phil first gained fame in the 1990s, having appeared on The Oprah Winfrey Show as a psychology expert.
His popularity led Oprah to help him launch his own show, Dr. Phil, in 2002, where he offered advice and counseling on health issues, as well as many viral moments.
The show became one of the most watched talk shows in the US, running for 21 seasons until it ended in 2023.
Although he holds a doctorate in clinical psychology, Dr Phil stopped practicing as a licensed psychologist in the early 2000s to focus on media and business ventures.
LADbible Group has contacted Dr Phil's representatives for comment.
Anish Vij