Shilo Sanders files for bankruptcy: Colorado DB’s debt stems from allegedly assaulting security guard in 2015

Colorado quarterback Shilo Sanders, son of coach Deion Sanders, is $11 million in debt and filed for bankruptcy in October 2023, according to USA today. The relief petition — which was filed under Chapter 7 of the Colorado Bankruptcy Code — states that Sanders is at risk of receiving $11.3 million arising from a March 2022 civil judgment in Texas. The initial filing indicated that Sanders has $478,000 in assets, although an amendment in December reduced that number to $320,000.

The document obtained by USA Today states that Sanders earned a gross income of $193,713 during the 2023 fiscal year. In fact, that number is lower than the $216,950 he brought in while playing at Jackson State in 2022. A large portion of his income can be attributed to name, image and likeness deals — Sanders reported a Mercedes valued at nearly $76,000 among his assets — but it’s a far cry from some of the NIL projections that outside metrics have placed on the Colorado star.

Here’s a look at the long legal battle that got Sanders to this point and what his bankruptcy filing could mean.

Legal troubles stem from a high school incident

John Darjean, a former safety at Triple A Academy in Dallas, Texas, filed a lawsuit against Sanders and his family in June 2016. The lawsuit alleges that in 2015, Sanders — who was 15 years old at the time — assaulted Darjean after Sanders refused Darjean’s request to hand over his cell phone.

Court documents obtained by Westword state that Sanders “slammed his elbow into Darjean’s chest and continued to hit Darjean after he fell. Darjean was taken to the hospital in an ambulance.”

Darjean claims he “suffered serious and permanent injuries, including a broken neck, cervical spine damage, permanent neurological damage and irreversible incontinence.” Sanders’ parents were included in the suit, but ultimately dropped out after winning summary judgment against Darjean in January 2019, according to USA Today.

In 2020, Sanders’ lawyers asked to withdraw the case when it became clear that their client, who was a redshirt freshman at South Carolina, could no longer financially pay for his services. Trial dates were constantly postponed until 2022, when the court decided to convene and hear Darjene’s case.

Sanders misses crucial meeting

According to USA Today, the Dallas County courthouse attached to Sanders’ trial noted that it “did not have an updated mailing address for defendant Shilo Sanders.” He attempted to send Sanders notice in February 2022 about his scheduled March trial date, although he used an address listed in South Carolina, where he has not resided permanently since 2020.

Sanders did not attend the trial because he did not receive notice and no attorney was present to represent him. As a result, the court entered a default judgment in March 2022 in favor of Darjean, ordering Sanders to pay $11.89 million.

Why did Sanders file for bankruptcy?

As a “petition for relief” might suggest, Sanders filed for bankruptcy in an attempt to pay off his debt in part or in full. Additionally, Sanders was granted a stay on his payments until the Colorado bankruptcy court can make a final decision.

Chapter 7 of the Colorado Bankruptcy Code states that in exchange for cooperation, full disclosure and movement of “non-exempt assets,” “a person is entitled to receive discharge and eliminate most debts.” Non-exempt assets include jewelry, property that is not the filer’s primary residence, or vehicles with equity, among various other assets and properties that the court may deem worthy.

Sanders’ attorney maintains that Sanders has fully complied with all requirements of the bankruptcy filing to date.

“(Sanders) took no action to hide, transfer, destroy or mutilate assets, whether before or after the date of the petition, and went so far as to voluntarily turn over more than $210,000 to the (bankruptcy) trustee without waiting for further order of the Bankruptcy Court, or even a rotation stipulation.” Sanders’ lawyer said in a court filing obtained by USA Today.