A federal judge in Texas has ruled that Phil McGraw, better-known as Dr. Phil, cannot file for bankruptcy under Chapter 11, a setback for the longtime talk-show host.
Instead, U.S. Bankruptcy Judge Scott Everett says McGraw must proceed under Chapter 7 liquidation for his media company Merit Street Media, according to The Hollywood Reporter.
Deadline reports that Everett criticized McGraw for “not being forthright” in regard to his business dealings and in the trial. Everett ruled the assets of Merit Street Media must be sold off to pay for McGraw’s debts.
“Candor to the court is critical,” Everett said in the hearing, according to Deadline. The judge said “crucial” communications had been erased and McGraw’s company was…