Dr. Phil's bankruptcy proceeding has not gone as planned.
A northern Texas judge ruled that Dr. Phil McGraw's Merit Street Media company assets will undergo a Chapter 7 liquidation instead of a Chapter 11 reorganization due to concerns of alleged wrongdoing, according to Variety and The Hollywood Reporter.
U.S. Bankruptcy Judge Scott Everett explained in his Tuesday, Oct. 28, ruling that this is largely due to suspicion about McGraw improperly filing for bankruptcy following alleged incriminating text messages. McGraw has denied several accusations regarding the bankruptcy, including that he allegedly filed for bankruptcy to jumpstart a new company.
The court cited evidence showing McGraw deleted an "unflattering" text message regarding a "gangster move" that allegedly incriminated him of trying to avoid paying certain creditors through the Chapter 11 route, Variety reported.
USA TODAY has reached out to McGraw's legal representatives for comment.
