Phil McGraw’s media company, Merit Street, has filed for bankruptcy, and he has recently lost the trial that determined what would happen with the company. According to The Hollywood Reporter, the case of bankruptcy has been in chapter 11, which means it’s been able to run while restructuring its debt plan. U.S. Bankruptcy Judge Scott Everett turned down a bid to keep it in chapter 11 bankruptcy and ordered it to chapter 7. The assets are to be sold under the oversight of a trustee.

According to The Hollywood Reporter, incriminating messages from McGraw that he later deleted had been found, with him saying he would try to “game” the bankruptcy by prioritizing certain creditors. In a bench ruling, Everett mentioned that, “Candor to the court is critical.” He also said McGraw’s business “was as dead as a doornail when the bankruptcy was filed.”

A spokesperson for McGraw’s production said there is a chance that the decision can be appealed. “We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen,” the spokesperson said via The Hollywood Reporter.

THR reports that Trinity Broadcasting sued the company after it filed for bankruptcy. The trial played a part in determining the legitimacy of the Chapter 11 filing. When questioned during his trial last month, McGraw confronted allegations that he had improperly filed for bankruptcy. He claimed that he had done everything possible to keep his business running. McGraw referred to himself as ‘The Little Engine That Could’ while he talked about the months leading up to the bankruptcy.

While Merit Street was in the process of filing, Trinity Broadcasting had sued them. The Hollywood Reporter states that while this was taking place, the TV show host started a project called Envoy Media. It was pioneered a day before the bankruptcy filing.

McGraw further elaborated on his decision to protect his filing: “I didn’t make the decision to file for bankruptcy. I capitulated,” according to THR.