Judge rules against Shilo Sanders, son of Colorado coach Deion Sanders, in bankruptcy lawsuit
According to USA Today, the judge in the bankruptcy case filed against former Colorado football player Shilo Sanders rejected Sanders’ request to dismiss the complaint alleging that he violated bankruptcy law.
The complaint relates to a 2015 incident in which Sanders reportedly assaulted a security guard at Sanders’ high school. According to USA Today, security guard John Darjean claimed he was left with permanent injuries from the attack, including “neurological injuries and damage to his cervical spine.”
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Following the incident, Darjean filed a lawsuit against both Sanders, who was 15 at the time, and his parents, former NFL star Deion Sanders and his wife, Pilar. Deion and Pilar withdrew from the case before it went to trial in 2022.
However, Shilo did not attend the hearing, causing the court to enter a default judgment against him for approximately $12 million. Silo filed for bankruptcy the following year as a way to get out of this debt.
As a result, Sanders was appointed a trustee — David Wadsworth — to manage his assets. However, Wadsworth filed a complaint against Sanders last October, alleging Sanders “violated bankruptcy law.” making unauthorized transfers About $250,000, according to USA Today. Sanders applied to get it. case dismissed In November.
However, the lawsuit filed by Wadsworth will be allowed to proceed after Judge Michael Romero’s decision on Wednesday, USA Today reported.
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In his complaint, Wadsworth claimed that the $250,000 in earnings transferred by Sanders should not be given to Sanders and should be deposited in the bankruptcy estate. Romero ruled that Wadsworth’s argument was solid enough to allow the case to proceed.
In bankruptcy cases, proceeds filed before the declaration of bankruptcy are generally placed in the bankruptcy estate. After filing for bankruptcy, the proceeds generally belong to the person who filed the bankruptcy.
Wadsworth argued that some of the money Sanders earned from NIL or his businesses deserved to go to the bankruptcy estate. Romero said Wadsworth “supported his allegations with sufficient factual allegations” and therefore the complaint was allowed to proceed.
But all of this could be completely turned upside down in August. On Tuesday, Romero set an Aug. 31 trial date to determine whether Sanders “intentionally and maliciously” injured Darjean in 2015. If it is determined that Sanders intended to harm Darjean, the debt and bankruptcy filing will remain valid. Otherwise, Sanders will be able to pay off his debt and exit the bankruptcy process, according to USA Today. That decision in August will likely impact Wadsworth’s complaint against Sanders.
Following his time in Colorado, Sanders went unselected in the 2025 NFL Draft. He joined the Tampa Bay Buccaneers as an undrafted free agent, but did not make the final 53-man roster.
