Television legend Dr. Phil‘s attempt to file for Chapter 11 bankruptcy for his media startup, Merit Street Media, has been denied by a judge, who has ordered that he liquidate the fledgling company.
The 75-year-old, whose full name is Phillip Calvin McGraw, filed for Chapter 11 for Merit Street in July, a move that would have enabled him to engineer a path forward for the company.
However, a U.S. Bankruptcy Judge Scott Everett has now turned down Dr. Phil’s request for Chapter 11—accusing the longtime TV personality of failing to reveal the full truth about his company’s finances and how they ended up in such a dire state.
He stated that Dr. Phil had displayed a lack of “candor” throughout proceedings, adding that “there is no hope for rehabilitation” for the TV host’s company—adding that he believes Merit Street was already “dead as a doornail when the bankruptcy was filed,” according to the Hollywood Reporter.
Everett ordered that the case be moved to a Chapter 7 liquidation, which will see a trustee placed in control of the sale of Merit Street’s assets, which will be used to pay off companies and creditors that are owed money.
The judge made his ruling after it was revealed that Dr. Phil had deleted text messages in which he laid bare plans to favor certain creditors over others.
“This case is an anomaly,” Everett said, claiming that Dr. Phil “favored creditors and not pay disfavored creditors, as his own texts show that he want to do.”
However, a spokesperson for Dr. Phil’s production company, Peteski Productions, told the Hollywood Reporter: “We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen.
“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.”
At the time of the initial bankruptcy filing, Merit Street Media reported assets of between $100 million and $500 million.
However, it is unclear what assets remain currently after the company launched a lawsuit against Christian broadcasting giant Trinity Broadcasting Network, with which Dr. Phil had previously inked a $500 million distribution deal.
Merit Street sued TBN for breach of contract, accusing the network of “abusing its position as the controlling shareholder.” TBN then countersued, levying fraud allegations against Dr. Phil.
During that trial, which is ongoing, Dr. Phil took to the stand to defend his actions, which were called into question again when it was revealed that he had launched another new media venture, Envoy Media, just one day before the Merit Street Chapter 11 filing.
TBN’s attorneys had suggested that the bankruptcy case was filed as a means to secure funding for Envoy, allegations that Dr. Phil vehemently denied.
“I’m like the little engine that could. 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,” he said.
Under their deal, TBN was meant to handle production and distribution of Merit Street content, while Dr. Phil’s company would produce new content.
However, things quickly went south when Dr. Phil allegedly failed to deliver new content while still taking the money. However, Dr. Phil’s company claimed that it was TBN that failed to deliver production support.
The bankruptcy filing is made all the more intriguing when you examine Dr. Phil’s extraordinary personal fortune. According to multiple reports, the TV host has amassed an estimated net worth of around $460 million—a hefty chunk of which he has poured into establishing an extraordinary property portfolio that is worth close to $39 million.
Here, we examine the staggering dwellings that make up his real estate collection—and a significant portion of his net worth.
Dr. Phil’s palatial Texas mansion
The longtime TV show host owns a sprawling abode in Dallas, which is situated on 1.6 acres and measures over 14,719 square feet.
The property offers seven bedrooms, eight bathrooms, and five half-baths.
Upon entering, guests are greeted with 25-foot soaring ceilings, stylish crown molding, and marble floors.
It boasts seven living areas, an elegant dining room with hand-painted walls, a library, seven fireplaces, and a chef’s kitchen with marble countertops and backsplash, and state-of-the-art appliances.
There is also a lavish primary suite with a walk-in closet.
Elsewhere, there is a full bar, theater room, 5,000-bottle wine cellar, and a four-car garage.
Outside, there is a large pool and spa in a resort style.
The TV host picked up the property in 2022 for $13.9 million. Estimates suggest that it is now worth more than $14 million.
Dr. Phil’s collection of California properties
Outside of the Lone Star State, Dr. Phil holds the keys to a six-bedroom, 8.5-bathroom abode in Calabasas, CA, which he picked up in 2011 for $6.58 million. Realtor.com® estimates show that it is now worth around $11.4 million.
The home spans 11,127 square feet and is situated on a 3.15-acre lot.
The dwelling, which was built in 2006, is surrounded by lush landscaping and features stunning archways on its facade and interior.
Upon entering the home, guests are greeted with an open floor plan with arched doorways that open to the courtyard.
The chef’s kitchen comes complete with wooden cabinets, bar seating, and state-of-the-art appliances.
The adjacent living area is lavish, as is the primary suite, which features a spacious and chic layout.
Amenities include a cozy theater room, tennis court, outdoor kitchen with a fireplace to keep you warm during California’s chilly nights, and resort-style pool.
According to property records, the TV host listed the home in October 2018 for $9.95 million. However, he removed it from the market after just one day.
Dr. Phil also has a property in Beverly Hills, which he snapped up in 2020 for $10 million. Recent estimates place its value at close to $13.6 million.
The dwelling, which was built in 2020, boasts five bedrooms, 6.5 bathrooms, and 6,533 square feet of living space.
It features an expansive floor plan and modern touches that add to its elegant interior.
All three of his home are registered to a family trust.