Shilo Sanders is back in bankruptcy court over a luxury SUV, but the bigger story is what that car now represents. The latest twist has Mercedes-Benz Financial Services asking a federal judge for permission to repossess his 2023 Mercedes-Benz after the company accused him of falling behind on payments again. According to a June 2 filing obtained by USA Today and referenced in the original report, Mercedes-Benz says Sanders is in default by about $9,170 for missed payments from February through May 2026.
That makes this more than a simple “pay the note” situation. Because Sanders filed for Chapter 7 bankruptcy in October 2023, creditors generally cannot just pull up and collect. The bankruptcy filing triggered an automatic stay, which is designed to pause collection efforts, harassment, foreclosure actions, and similar creditor moves while the court sorts through the case. In other words, Mercedes-Benz has to ask the judge before it can take the vehicle back.
Mercedes-Benz says the math is getting tight. The filing claims Sanders still owes about $72,155 on the SUV, while the vehicle is valued around $75,900. The company also argued this is the second time in a little over a year that it has needed court intervention tied to the car. A prior dispute surfaced in April 2025 and was resolved after payment was made, allowing Sanders to keep the vehicle at that time.
The company’s attorney did not dress the request up.
“The motor vehicle is depreciating in value, the contract is in default and the movant is being prevented by the automatic stay from exercising its remedies to repossess and liquidate its collateral,” the filing states.
Still, the Mercedes drama is only one lane in a much larger financial pileup. Court records show the bankruptcy case stems from an $11,890,937 Texas judgment in favor of John Darjean, a former school security guard who sued Sanders over a 2015 altercation. Sanders has maintained that he acted in self-defense. Darjean is fighting Sanders’ attempt to wipe out that debt in bankruptcy, arguing it should be treated as nondischargeable.
That legal distinction is where the stakes get serious. Federal bankruptcy law generally does not allow debtors to erase debts tied to “willful and malicious injury” to another person or another person’s property. A bankruptcy judge already ruled that the Texas judgment has effect on causation and damages, but not on whether Sanders acted willfully, maliciously, or in self-defense. Because those questions involve intent and credibility, the court said they belong at trial, not summary judgment.
Meanwhile, Sanders’ NIL money is also under a microscope. In a separate bankruptcy proceeding, court records say Sanders earned money through social media and name, image, and likeness deals before and after filing bankruptcy. The court records state that Sanders formed Big 21 LLC and Headache Gang LLC, with pre-bankruptcy NIL contracts primarily going through Big 21 and post-bankruptcy contracts primarily going through Headache Gang.
The trustee claims some of the funds moving through Big 21 may belong to the bankruptcy estate, while Sanders’ side has argued the money should be treated as post-bankruptcy earnings. That difference matters because Chapter 7 bankruptcy creates an estate, and a trustee can gather and sell nonexempt assets to pay creditors. The court has already noted that sorting out whether certain NIL-related funds are estate property will require evidence about what services Sanders performed, when he performed them, and how the contracts were structured.
There was one small win for Sanders recently. Barnes & Thornburg voluntarily dismissed, without prejudice, its lawsuit seeking about $164,000 in unpaid legal fees tied to Sanders’ personal injury matters, according to Bloomberg Law’s summary of the filing. But that dismissal did not clear the main bankruptcy fight, the Mercedes request, or the trustee’s NIL-related claims.
On the football side, Sanders’ name still carries weight. He played at South Carolina, Jackson State, and Colorado before signing with the Tampa Bay Buccaneers as an undrafted free agent in 2025. NFL.com reported that he compiled 229 tackles, six interceptions, 13 pass breakups, and seven forced fumbles across six college seasons, while Colorado listed him as a graduate safety who finished the 2024 season with 67 total tackles.
Now, the courtroom is driving the story more than the stat sheet. The Mercedes-Benz filing gives the case a flashy headline, but the real issue is whether Sanders can protect certain assets and income streams while trying to discharge a nearly $12 million judgment. The car may be the most visible symbol of the fight, but the bigger question is whether his financial reset survives contact with creditors who are not letting this one slide.
