A federal judge has ruled in the bankruptcy case of Shilo Sanders, providing a boost to the Colorado football player in his quest to eliminate over $11 million in debt.

However, the case is far from resolved. Judge Michael E. Romero stated that the legal proceedings need to go to trial to assess whether Shilo Sanders, the son of Colorado’s head coach Deion Sanders, acted “willfully and maliciously” when he allegedly assaulted a security guard at school back in 2015, when Shilo was just 15 years old.

“This Court has already established that the matters concerning willful and malicious behavior will need to be re-evaluated in this case,” Judge Romero noted in his ruling on Tuesday, which was reported by YSL News Sports. “Evaluating this will involve looking into any justification, such as self-defense, that Sanders may present for his alleged willful and malicious actions.”

If Judge Romero had ruled otherwise, Shilo Sanders would have faced a significant setback in his attempt to eliminate the $11 million debt to John Darjean, the security guard involved in the 2015 incident. Instead, Shilo can continue to contest the case in various legal arenas, more than nine years after the event took place.

What led to this bankruptcy situation?

Following the incident, Darjean filed a lawsuit against Shilo in 2016, claiming to suffer serious, lasting injuries, including incontinence. He alleged that Shilo struck him on the upper chest and punched him while trying to take his phone at school.

Shilo and his father, Deion Sanders, denied the accusations, asserting that it was Darjean who initiated the confrontation. Shilo even gave testimony during pretrial sessions and lodged counterclaims against Darjean. However, he failed to appear at his trial in 2022, which resulted in a default judgment of $11.89 million against him.

After Darjean sought to collect on that judgment last year, Shilo filed for bankruptcy in October 2023 in an effort to discharge that debt.

Despite this, Darjean is determined to secure the compensation he believes he is owed, actively contesting Shilo’s request for debt discharge in bankruptcy court.

What was the nature of the bankruptcy ruling?

Typically, individuals can eliminate their debts by declaring bankruptcy, as Shilo Sanders did last year. His motivation for doing so was to discharge the $11 million debt to Darjean, allowing him a chance at a “fresh start, free from the burdens of his debt,” according to his legal team. Yet, there are legal exceptions that prevent certain types of debts from being discharged, including debts arising from “willful and malicious injury” caused by the debtor.

In response to Shilo’s filing for bankruptcy, Darjean’s lawyers submitted two complaints contesting Shilo’s attempt to discharge the debt while continuing their pursuit of what Sanders owes them.

In one of these complaints, they argued that Shilo should not be allowed to eliminate this debt due to its nature, which they labeled as stemming from a willful and malicious act. They requested the judge to issue a summary judgment ruling on this matter, asserting that it had already been addressed in a state court in Texas and shouldn’t be revisited.

However, the bankruptcy judge partially disagreed with Darjean’s legal team, denying the motion for summary judgment regarding whether Shilo acted willfully and maliciously. He acknowledged that issues of causation and damages were previously litigated in state court but noted that Shilo’s mindset at the time of the incident in 2015 was not addressed.

“The findings and judgment from the State Court (in Texas) do not discuss Sanders’ intent,” the judge wrote. “Due to this absence of findings, the Court is hesitant to conclude that the issue of self-defense was completely and fairly litigated in state court.”

Why did the judge favor Shilo Sanders?

The challenge for Darjean in this case is that the Texas state court did not use the phrase “willful and malicious” in its findings or judgment against Sanders in 2022. However, it was clear about ruling who bore responsibility.

“The Court finds that John Darjean’s injuries and damages were a foreseeable result of the physical attack carried out by Shilo Sanders,” stated the state court in its findings from 2022.

This, however, was insufficient for the bankruptcy judge to conclude that Shilo acted willfully and maliciously during the alleged assault in 2015 under bankruptcy law. The determination of being willful and malicious pertains to his psychological state at that moment.

“Sanders claimed self-defense in his response to the state court, but he did not present evidence regarding his mindset during the trial,” the bankruptcy judge pointed out. “One might argue that the state court implicitly rejected all defenses Sanders raised when it found he committed assault. However, the Order and Judgment from the State Court make no reference to self-defense or any justification Sanders provided for his actions. There is no indication that the state court deliberated on Sanders’ mindset or whether his perception of danger was reasonable.”

What are the next steps in this case?

The judge has stated that questions regarding whether there was a willful act, malicious injury, or self-defense will be resolved during this proceeding. This indicates that there will be a trial on these issues in the future. Meanwhile, the trustee managing the bankruptcy estate has been gathering information about Shilo’s assets to recover them for the creditors.

Additionally, there is another complaint against Shilo, alleging that he has hidden or failed to disclose assets. Shilo’s legal team has refuted these claims, asserting that they have been cooperative throughout the process.

Shilo, who is currently 24 years old, is a graduate student in Colorado and is set to play his final college game on December 28 in the Alamo Bowl against BYU.