DENVER – On Thursday, a federal bankruptcy judge listened to arguments in the bankruptcy case of Shilo Sanders, a Colorado football player. The judge questioned whether there was sufficient evidence to rule against Sanders in a way that would prevent him from eliminating over $11 million in debts.

Judge Michael Romero did not make any decisions after the hearing but mentioned that if he declines the request for a quick judgment against Sanders, the case could proceed to trial. This trial would focus on Sanders’ mental state at the time of an alleged incident where he assaulted a security guard at his school in 2015, when he was just 15 years old.

“If I deny the motion for summary judgment and we have a trial, wouldn’t you agree it’s solely about the mental state at that time?” Romero asked Sanders’ lawyer. “Is that the only question I will be addressing? I’m not going to rehash the whole case.”

Sanders’ lawyer concurred.

“Understanding what was going through this 15-year-old’s mind at the time is crucial to this case,” expressed his attorney, Victor Vital.

Shilo Sanders has delivered about $210,000 in case

Shilo Sanders, the son of Colorado coach Deion Sanders, has handed over around $210,000 to the bankruptcy estate, along with his tax returns, bank statements, and endorsement agreements, as shared by Keri Riley, another attorney representing him at the hearing. She noted that Sanders also had his apartment evaluated as part of his effort to have his debts wiped out through bankruptcy.

Shilo did not attend the court session in downtown Denver as he prepares with his team for a game against Texas Tech on Saturday. He is a graduate student at Colorado and was the team’s leading tackler last year.

“We’ve been completely cooperative,” Riley informed the judge.

What was this bankruptcy hearing concerning?

This hearing focused on a vital summary judgment related to the key issues in Shilo’s bankruptcy case.

Shilo Sanders filed for bankruptcy in October 2023, intending to eliminate over $11 million he owes John Darjean, a security guard at his former school in Dallas.

Typically, individuals can eliminate their debts through bankruptcy to start anew, free from the heavy burden of financial obligations, according to Sanders’ attorneys. However, certain legal exceptions can prevent debt relief. One such case is if the debt arises from a “willful and malicious injury by the debtor.”

In Sanders’ situation, Darjean’s legal team argues that this is the reason Sanders should remain liable for repaying every dollar. They claim that the debt should not be dischargeable since it results from a willful and malicious act perpetrated by Sanders against Darjean in 2015 when Darjean attempted to confiscate Sanders’ phone at school. Darjean asserts that Sanders delivered a powerful elbow strike to his upper chest, which resulted in permanent injuries, including spinal issues and incontinence.

Darjean subsequently sued Sanders for damages in a civil court in Texas, where he presented evidence of the incident and won an $11.89 million default judgment against Sanders following a trial in 2022. Attorney Ori Raphael, representing Darjean, asserted that the judgment and findings from the Texas court sufficiently demonstrate willful and malicious intent, even if the documents do not explicitly state those terms.

“You should take these findings of fact and final judgment as implying ‘willful and malicious’ behavior,” Raphael argued before the judge.

What was being contested?

Shilo and Deion Sanders previously claimed that Darjean was the instigator, not Shilo. However, it may be too late to challenge that assertion in court since Shilo did not attend the trial in 2022. Now, at 24, he has lawyers trying to relieve him from the financial liability through bankruptcy.

Darjean’s legal team is seeking a summary judgment deeming Sanders’ debt non-dischargeable due to its origin in a willful and malicious act. They assert that Shilo’s assault on Darjean has been established in the Texas civil court, and there is no need for a new trial on that issue.

“On September 17, 2015, Shilo Sanders indeed inflicted physical harm and injuries on John Darjean through his assault,” the final judgment from a Texas judge in 2022 declares.

Shilo’s attorneys counter that the final judgment or other findings from the case do not meet the legal criteria for “willful and malicious” intent that would render the debt non-dischargeable. The determination of willful and malicious intent relates to Sanders’ mental state at the time of the altercation.

“We’re only left with conjecture about what the mental state was,” Vital explained to the judge.

What would happen if the judge rules against Shilo Sanders?

If the judge decides that this debt can’t be discharged, Shilo would be responsible for repaying Darjean, who could then seek to collect on Shilo’s assets to recover the owed amount. This outcome would completely negate Shilo’s reason for filing for bankruptcy—to eliminate this debt.

The judge is currently reviewing the matter and is expected to rule later. The decision may hinge on specific terminology and the interpretation of words regarding intent is “deliberate and harmful.”

“I fear it’s turned into a word game since those specific terms aren’t present (in the Texas court ruling) – hence it can’t be considered deliberate and harmful,” Raphael expressed to the judge.

“In this court, language matters greatly,” Judge Romero replied.

“Just like the definition of ‘is’,” Raphael remarked.

“Precisely,” the judge confirmed. “Welcome to my world.”

What could happen if the judge rules in Shilo’s favor?

If the judge believes the evidence isn’t satisfactory to determine if the actions were “deliberate and harmful,” the case may go to trial to clarify that point, rather than the judge delivering a swift ruling now. Consequently, Darjean would continue to contest Shilo’s bankruptcy claim on several levels.

His attorney implied that it’s possible Shilo may have acted carelessly or negligently, rather than deliberately and with harmful intent.

“We’re prepared to have a trial in front of Your Honor for you to sift through the details  to determine if there was sufficient evidence of deliberate and harmful intent,” Vital informed the judge.

What additional comments did the judge make?

In a different case on Thursday, the judge stated he wants Darjean’s legal team to work together with the bankruptcy trustee who is responsible for identifying and selling assets for creditors.

Recently, Darjean’s lawyers requested the judge to broaden the asset investigation to include a subpoena for Shilo’s asset details from Deion Sanders and other relevant parties.

This week, the trustee also asked the court for access to documents from the University of Colorado, Wells Fargo Bank, and Redpoint Financial Group – an accounting firm – to evaluate Shilo’s properties and financial situation for the benefit of creditors.

“We’re investigating who is funding the NIL endorsements, where the finances are coming from for purchasing properties, vehicles, jewelry  and anything else we uncover,” said Jeff Carruth, another attorney for Darjean.

Carruth mentioned that this might necessitate expert accounting investigations.

“Mr. Darjean, after his prolonged wait, deserves to receive his funds,” Carruth stated.

The judge emphasized that he doesn’t want external parties to be disturbed for evidence requests more than once.

“Given the extensive nature of your document requests and considering the high profile of this case, I want to ensure that we handle this in a unified manner,” remarked the judge.

Shilo Sanders is currently completing his final season of college football this autumn. He has played in five games for the Buffaloes (6-2) but has been sidelined for three due to a broken forearm.