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Shilo Sanders Faces Legal Action Over Unpaid Car Payments Amid Bankruptcy

Colorado football safety Shilo Sanders is currently embroiled in a legal dispute regarding his 2023 Mercedes-Benz, as Mercedes-Benz Financial Services has sought court intervention due to missed payments. This comes in the wake of Sanders’ bankruptcy filing in 2023, during which he disclosed over $11 million in debt.

According to documents submitted to the court, Sanders, who is the son of Colorado coach Deion Sanders, has failed to make payments totaling $6,877, which were due from December through February. The financial services division indicated that his remaining balance is $97,239, while the trade-in value of the vehicle is estimated at $97,000, slightly less than what Sanders owes.

The company is now requesting the court’s approval to reclaim the vehicle and ascertain its whereabouts, claiming that the asset is depreciating in value and they are hindered from taking necessary actions due to the current bankruptcy protections.

Shilo Sanders, now 25 years old, is an NFL draft prospect. He filed for Chapter 7 bankruptcy in October 2023 with the intention of eliminating most of his substantial debts, primarily owed to John Darjean, a security guard from a Texas school. This situation stems from an incident dating back to 2015 when Darjean claimed that Sanders caused him severe injuries while trying to take his phone during a school confrontation.

The bankruptcy filing led to an automatic stay on debt collection against Sanders. However, Mercedes-Benz Financial Services argues that they deserve an exception from this stay, citing the vehicle’s depreciating condition and the breach of contract terms.

In May 2023, Sanders agreed to purchase the $135,000 vehicle and continued making payments even after declaring bankruptcy. Recently, however, he has defaulted, leading the company to question his stated intention of retaining the car and reaffirming the loan obligation.

The legal complications surrounding Shilo Sanders’ bankruptcy case were intensified by his failure to appear in court for the trial regarding the damages claimed by Darjean, resulting in a default judgment of nearly $11.9 million against him. Shilo’s hope for a financial reset through bankruptcy is now complicated by Darjean’s ongoing attempts to collect on the judgment and prevent its discharge.

As the NFL draft approaches later this month, it remains uncertain whether Sanders will be drafted or pursue opportunities as an undrafted free agent. If the court ultimately discharges his debt, Darjean may recover only a fraction of what he is owed, but if not, he may continue to pursue Sanders for the outstanding amount in the future.

Shilo Sanders’ attorney could not be reached for comment regarding the ongoing situation.

Source
finance.yahoo.com