Shilo Sanders' $11.89 Million Bankruptcy Case Heads to Trial as Court Weighs Debt Discharge and Sealed Records

Shilo Sanders, the son of Pro Football Hall of Famer and Colorado head coach Deion Sanders, is at the center of a high-profile bankruptcy case involving an $11.89 million default judgment and an ongoing dispute over whether key court records should remain sealed. The case, which stems from an altercation at a Dallas school in 2015, has drawn renewed attention ahead of a scheduled bankruptcy trial on August 31.

The legal battle began after former school security guard John Darjean alleged that then-15-year-old Shilo Sanders assaulted him while the guard attempted to confiscate his phone. Darjean claimed the incident caused serious and lasting injuries, while Sanders has consistently maintained that he acted in self-defense. Deion Sanders and his former wife, Pilar Sanders, were initially named in the lawsuit but were later dismissed, leaving Shilo as the sole defendant.

Bankruptcy trial will determine whether Sanders can erase the judgment

According to court records cited by USA Today, the lawsuit resulted in an $11.89 million default judgment in 2022 after Sanders did not appear for trial. Earlier court filings indicated that his attorneys withdrew from the case in 2020, stating he was “unwilling or unable to continue funding the defense,” and no new legal representation was in place before the trial.

Sanders filed for Chapter 7 bankruptcy in 2023, temporarily halting collection efforts. However, the central issue is whether the judgment can legally be discharged. Darjean argues the debt arose from a “willful and malicious injury,” which is generally not dischargeable under U.S. bankruptcy law. Sanders’ legal team disputes that claim, arguing the confrontation was an act of self-defense.

Deion Sanders, father of Shilo Sanders, was initially named in the lawsuit before being dismissed from the case. (Image via Colorado Buffaloes Athletics)

The bankruptcy proceedings have also become the focus of a transparency dispute. USA Today has asked the court to unseal portions of previously sealed filings and a transcript from a closed pretrial hearing, arguing that the public has a legitimate interest in understanding how an eight-figure bankruptcy case involving a public figure is handled.

Some of the sealed documents reportedly involve Sanders’ juvenile disciplinary history and evidence that his attorneys have sought to exclude from the upcoming trial. USA Today contends that much of the underlying information was previously available during the original Texas litigation and that bankruptcy proceedings are generally intended to remain open to the public.

Additional financial disputes remain unresolved

Beyond the judgment itself, Sanders’ bankruptcy estate includes other financial matters. Court filings have referenced disputes involving NIL-related transfers, a repossession request tied to a Mercedes-Benz vehicle, and a separate lawsuit seeking unpaid legal fees from former counsel.

With the bankruptcy trial approaching, the court must decide whether Sanders remains responsible for the multimillion-dollar judgment while also determining how much of the proceedings should be accessible to the public. The outcome could have significant implications for both the financial case and the broader debate over transparency in high-profile legal disputes.