Shilo Sanders accused of using loophole to avoid responsibility in bankruptcy case

Colorado Buffaloes defensive back going into an uncertain chapter of his life

Candice Ward-USA TODAY Sports

Shilo Sanders entered Colorado's fall camp in Boulder this week with significant uncertainties looming over his final college football season. His primary concerns are two-fold with Coach Prime's middle son needing to overcome injury and help lift the Buffaloes to a bowl game, and resolving a massive $11.8 million debt owed to former security guard John Darjean, which led Sanders to file for bankruptcy last October.

Both situations carry substantial implications for the 24-year-old, who has an NFL future hanging in the balance. However, the debt issue may reach a critical point soon. Recently, Darjean's attorneys reiterated their case to the trustee, insisting that Sanders be held accountable for an alleged 2015 assault when he was 15. Darjean argues that allowing Sanders to contest this matter again would create a loophole for evading responsibility for assaults.

“If Defendant (Sanders) is allowed to relitigate this matter, then Defendant is creating a new legal loophole to avoid responsibility when someone assaults another,” Darjean attorneys wrote in a court filing last week.

A federal bankruptcy trustee could rule on this matter soon, potentially impacting Sanders' bankruptcy plea and subjecting him to debt collection until he repays the amount. Sanders filed a Chapter 7 bankruptcy case last October, aiming to halt Darjean's debt collection efforts and absolve him of the debt, providing him a "fresh start," according to his attorneys in court filings. Generally, bankruptcy courts discharge debts to aid "honest but unfortunate debtors," but exceptions exist, particularly for debts arising from "willful and malicious injury," Darjean's attorneys argued.

Darjean claims Sanders assaulted him while trying to confiscate his phone, which resulted in severe spinal and nerve injuries. A 2022 trial in Dallas led to a default judgment against Sanders, who failed to appear, resulting in a ruling that he owed Darjean $11.89 million. Darjean has vowed to pursue what he is owed and opposes the discharge of the debt in bankruptcy court.

Sanders contests Darjean’s account, citing self-defense and questioning whether Darjean’s injuries stem from pre-existing conditions. However, Darjean’s attorneys argue that relitigating the incident is impermissible, given the previous state court decision. They assert that Sanders’ absence from the trial and the default judgment precludes him from contesting the matter again.

Coach Prime and Shilo Sanders address bankruptcy before Dallas case sealed

According to legal experts, Sanders faces significant challenges. The Texas state court's judgment involved willful and malicious conduct, which complicates his bankruptcy case. Darjean’s attorneys seek a summary judgment to prevent the debtor's discharge, which, if granted, would mean Sanders remains liable for the multi-million debt.

If the judge rules in favor of Darjean, Sanders can appeal, but the case could also proceed to trial, if the judge allows. The outcome depends on whether the bankruptcy judge upholds the state court’s default judgment. This case also includes another complaint against Sanders, alleging he concealed assets in his bankruptcy disclosures. The complaint is pending, with Sanders seeking to dismiss parts of it.

Despite the gravity of the situation, Sanders remained optimistic at the Big 12 Media Days, asserting that the truth would prevail. As Colorado prepares to open the season against North Dakota State on August 29, Sanders’ legal and football futures hang in the balance.