Shilo Sanders Bankruptcy Case Headed to Trial After $11.9M Ruling

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Shilo Sanders bankruptcy case update

Image source: David Dennis/Icon Sportswire via Getty Images

According to USA TODAY Sports, security guard Josh Darjean is still seeking to collect the money awarded to him and is working to prevent Shilo Sanders from wiping out the debt through bankruptcy. Darjean’s attorneys recently asked the court for summary judgment, arguing that the injuries he suffered were the result of a “willful and malicious” act by Sanders.

Bankruptcy Judge Michael Romero denied that request on January 27, ruling that the case includes disputed facts that must be resolved at trial. Shilo filed for Chapter 7 bankruptcy in October 2023, more than two years after the civil judgment was entered against him.

In his written decision, Judge Michael Romero explained that key facts surrounding the confrontation remain disputed, including details of the incident and Sanders’ intent. He noted that bankruptcy courts cannot resolve factual disagreements or judge credibility during summary judgment, which is why the matter must be decided at trial, according to USA TODAY Sports.

The case dates back to September 17, 2015, when Shilo Sanders was 15 years old and attending Focus Learning Academy in Texas. Darjean alleged that Sanders attacked him after being confronted for using a cellphone on campus.

Darjean later sued Shilo in Dallas County District Court, claiming the incident caused permanent neurological damage and injuries to his cervical spine. Although Sanders’ parents were initially named as defendants, they were later dismissed, leaving Shilo as the sole party in the lawsuit.

The case went to trial in March 2022, just months after Shilo Sanders completed his first season at Jackson State. Sanders did not respond to trial notices and failed to appear, leading a jury to find him liable.

The jury ordered Shilo to pay $11.9 million to Darjean, along with an additional $214,621 to the insurance company that covered Darjean’s workers’ compensation benefits. Those judgments now sit at the center of the bankruptcy dispute.

Shilo also faces challenges from bankruptcy trustee David Wadsworth, who filed a complaint in October alleging Sanders improperly transferred about $250,000 from his company, Big 21 LLC, after the bankruptcy filing. The trustee claims the funds were part of the bankruptcy estate and that the transfers violated the automatic stay.

Darjean currently has two active legal actions against Shilo. On January 27, Judge Romero approved a request to temporarily pause one lawsuit while Darjean’s attorneys focus on their strongest claim under Section 523(a)(6), which prevents debts tied to “willful or malicious” injuries from being discharged.

Sanders has argued that the incident was an act of self-defense, but Judge Romero made it clear the legal fight is far from over. “I’m sure this is not the end of this,” the judge warned.

Off the field, Shilo Sanders’ football future remains uncertain after he was waived by the Tampa Bay Buccaneers before the 2026 season. Despite the mounting legal pressure, Sanders has remained in the public spotlight, recently appearing on the Paris runway alongside his brother, Shedeur Sanders.

As the case moves toward trial, the ruling will play a major role in determining whether Shilo can escape the $11 million judgment or remain financially responsible for it.

FAQ:

What is the Shilo Sanders bankruptcy case about?

The Shilo bankruptcy case centers on whether he can eliminate an $11.9 million civil judgment through Chapter 7 bankruptcy. The debt comes from a lawsuit filed by security guard Josh Darjean over a 2015 incident.

Why did the judge send Shilo Sanders’ case to trial?

The judge ruled that key facts about the incident are still disputed. Because bankruptcy courts cannot decide credibility or intent at the summary judgment stage, the case must be resolved at trial.

What happened in the 2015 incident involving Shilo Sanders?

In 2015, Shilo was accused of attacking a campus security guard at a Texas school after being confronted over cellphone use. The guard later claimed the incident caused permanent neurological and spinal injuries.

Why is Shilo Sanders facing an $11.9 million judgment?

A jury found Shilo liable in a 2022 civil trial after he failed to appear in court. The jury awarded $11.9 million to the injured security guard and additional damages to the workers’ compensation insurer.

Can Shilo Sanders erase the debt through bankruptcy?

That is still undecided. The court must determine whether the debt resulted from a “willful or malicious” injury, which would make it ineligible for discharge under bankruptcy law.

What is Section 523(a)(6) and why does it matter?

Section 523(a)(6) is a bankruptcy rule that prevents debts caused by intentional or malicious harm from being erased. Darjean’s legal team is using this rule to block Shilo Sanders from clearing the debt.

Has Shilo Sanders responded to the allegations?

Shilo has said the incident was an act of self-defense. His legal position will be examined more closely when the case goes to trial.

What other legal issues is Shilo Sanders facing?

Shilo is also accused of improperly transferring about $250,000 after filing for bankruptcy. The bankruptcy trustee claims the transfers violated court rules and are under investigation.

How does this affect Shilo Sanders’ football career?

Shilo is currently without a team after being waived by the Tampa Bay Buccaneers before the 2026 season. The ongoing legal battle adds uncertainty to his football future.

Is the Shilo Sanders bankruptcy case over?

No. The judge made it clear the case is not finished, and a trial will determine whether Shilo Sanders remains responsible for the $11 million judgment.

Also Read: Lincoln Riley, USC Brace for Brutal Big Ten Gauntlet in 2026

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Adam Rodgers is a dedicated sports writer with a passion for covering the latest news, stories, and highlights from the world of sports. He brings insightful analysis and engaging reporting to keep fans informed and connected to the games they love.