**Dr. Phil Suffers Major Legal Setback as Judge Accuses Him of Destroying Evidence**
*Published Oct. 28, 2025, 7:55 p.m. ET*
Dr. Phil McGraw has taken a significant loss in court, with a judge accusing the television star of destroying evidence to gain an upper hand, RadarOnline.com can reveal.
On Tuesday, October 28, U.S. Bankruptcy Judge Scott Everett ordered Dr. Phil’s failed television startup, Merit Street Media, into liquidation under Chapter 7. The judge declared that creditors would be better off if an independent trustee managed the sale of the company’s assets.
### Judge Calls Out Dr. Phil in Intense Court Hearing
“Candor to the court is critical,” Judge Everett stated during the hearing. He pointed to court evidence suggesting that Dr. Phil deleted incriminating text messages. The judge also accused him of attempting to manipulate the bankruptcy process by prioritizing payments to favored creditors over others.
Judge Everett stressed that Dr. Phil’s business was “as dead as a doornail when the bankruptcy was filed” and added that “Mr. McGraw believed he was calling the shots.”
### Dr. Phil’s Team Responds to Ruling
Despite the ruling, Dr. Phil’s fight is far from over. A spokesperson for his production company, Peteski, responded to the verdict:
“We respectfully disagree with the court’s ruling and take issue with its comments concerning Dr. Phil McGraw. Dr. Phil is a leader of the highest integrity whose actions reflect honesty, ethics, and a life-long commitment to helping people. We are reviewing all our options regarding an appeal, which is likely.”
### Background: The Fallout from a $500 Million Deal
The verdict follows a trial concerning the aftermath of a $500 million deal between Dr. Phil and the Trinity Broadcasting Network (TBN). Dr. Phil’s joint venture, Merit Street Media, filed for Chapter 11 bankruptcy protection earlier this summer.
However, just one month later, TBN countersued, accusing Dr. Phil of “reprehensible conduct” and claiming he tried to back out of the deal. Court documents reveal that Dr. Phil referred to his own strategy as a “gangster move” aimed at reducing TBN to a minority stake.
The judge also noted that Dr. Phil later deleted a text message about wiping out claims by both TBN and another creditor, Professional Bull Riders, presumably to prevent this information from coming to light.
### Dr. Phil Defends Himself in Court
Dr. Phil took the stand last month to counter the allegations that he improperly filed for bankruptcy. He maintained that he did everything possible to keep Merit Street Media afloat.
“I’m like the little engine that could,” Dr. Phil said. “I’m doing everything I can to keep Merit up and running. This theory, that this was all a ploy to set up Envoy Media, is absurd.”
### New Beginnings with Envoy TV
Recently, Dr. Phil secured a deal with Charter Communications for his newly launched Envoy TV.
“I’m thrilled to be putting on the Charter team jersey and launching our new flagship Envoy TV network with my friends at the nation’s leading cable and broadband provider,” Dr. Phil wrote on October 6 about the 24/7 network he “created and curated.”
### Dr. Phil Enters Immigration Debate
Before the court case, Dr. Phil involved himself in a controversial immigration matter by joining Immigration and Customs Enforcement (ICE) and former Trump border czar Tom Homan during an operation in Chicago.
The team arrested undocumented migrants, and Dr. Phil later shared on X (formerly Twitter) a confrontation with one detainee, Sam Seda from Thailand. Seda confirmed he is not an American citizen but claimed his mother was born in the United States.
Tom Homan identified Seda as an “illegal alien convicted of sex crimes involving children.”
“Great work by Tom Homan and law enforcement taking down a convicted sex offender,” Dr. Phil posted on the platform. “This is exactly what we need more of, keeping our communities safe from predators.”
He added, “Time to take our country back!”
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*Stay tuned for further updates on Dr. Phil’s legal battle and new ventures.*
https://radaronline.com/p/dr-phil-bankruptcy-case-destroyed-crucial-evidence/