Shilo Sanders’ Bankruptcy Filing, Social Media Use Draw Questions

Despite being known as a legal process for people without money, bankruptcy has been used by plenty of famous and successful people throughout history. Abraham Lincoln has declared bankruptcy and Donald Trump has declared bankruptcy six times so far. Bankruptcy has also been used by numerous professional athletes, like Lenny Dykstra, Mike Tyson, and Michael Vick. When a debtor files for bankruptcy, they aren’t expected to give up all of their worldly possessions and live in extreme poverty. However, a bankruptcy debtor also shouldn’t be flaunting an extravagant lifestyle for the world to see, especially on social media. This can give your creditors reason to object to their debts being included in your case’s discharge when they otherwise might not have. It can also increase the risk that the trustee will investigate the information provided in your petition. Don’t let your bankruptcy case be subject to these kinds of obstacles and inconveniences. Our Vegas Bankruptcy Lawyers will guide you through each step so that your debts can be discharged effectively. Get started today with your free consultation by calling 702-899-3328.

Why Shilo Sanders Declared Bankruptcy

Shilo Sanders, a Colorado defensive back, declared bankruptcy in October 2023 as a result of an incident that occurred during his high school years. In 2015, Shilo Sanders was a student at Triple A Academy, where his father Deion Sanders was also the CEO. A security guard by the name of John Darjean was escorting Shilo to in-school suspension for violating the school’s no-phone policy. Unhappy with the situation, Shilo called his mother, Pilar Sanders, who was divorced from Deion Sanders in 2013. An assistant coach came to Darjean’s office with Deion on the phone, who instructed Darjean to take away Shilo’s phone after learning that he was on the phone with his mother (and Deion’s ex-wife). Shilo then slammed Darjean in the chest with his elbow. This caused Darjean to fall to the ground, where Shilo continued to strike him, and sustain injuries including a broken neck, neurological damage, and irreversible incontinence.

While this incident occurred in 2015, a state court didn’t find Shilo Sanders liable for assault and battery until 2022. The court ordered that Sanders pay Darjean $11.89 million. Sanders didn’t end up filing for bankruptcy until almost a year later, in October 2023. His petition was filed under chapter 7 in Colorado. Sanders also amended his petition in December 2023. His original petition stated $478,000 in assets, including a Mercedes worth $76,000, but his amendment only listed $320,000 in assets. He also originally stated an income of $216,950 while playing at Jackson State, which went down to $193,713 playing for Colorado.

How His Social Media Posts Have Affected His Case

Filing for bankruptcy isn’t meant to clear the financial obligations of those who have the means to pay their debts. Funds and assets that may be missing from a debtor’s bankruptcy petition could be used to pay back creditors. Therefore, it’s best for bankruptcy debtors not to advertise their wealth and lifestyle before, during, or shortly after a bankruptcy filing.

Shilo Sanders has more than one million followers on Instagram, and also maintains profiles on other sites such as YouTube. These profiles allow his followers- and his creditors’ lawyers- to take a glimpse into his expenses and possessions. For example, in one YouTube vlog, Sanders visited the Louis Vuitton store, claiming to have a goal of spending at least $50,000. He also posts collaborations with brands like TurboTax, Meta Quest, and KFC. The income from these sponsored content posts was not listed in his petition. John Darjean’s lawyers have raised objections to discharging the multimillion-dollar judgment as Sanders portrays a luxurious lifestyle on his social media. Other bankruptcy filers should learn from his example and avoid posting about material possessions, travel and vacations, etc., or risk their bankruptcy cases’ good standing.

Creditor Objections in Chapter 7 Bankruptcy

Shilo Sanders filed for chapter 7 bankruptcy, which is the most commonly-filed type of bankruptcy in Las Vegas and the rest of the country. Chapter 7 bankruptcy wipes out unsecured non-priority debts. Most lawsuit judgments fall into this category. For the most part, creditors don’t get overly involved in chapter 7 bankruptcy cases. If the debtor was honest in their filing, fighting against debt discharge is a losing battle and a waste of resources. But there are circumstances that may cause a creditor to raise objections and possibly attend the 341 Meeting of Creditors. A credit card company may raise objections if the debtor charged luxury purchases and cash advances shortly before filing for bankruptcy. Lawsuit plaintiffs can also request the Bankruptcy Court to exempt a judgment from a bankruptcy filing. These requests are most likely to be granted if the judgment stems from the debtor’s willful, malicious, violent, etc., actions toward the creditor. An assault and battery judgment is a perfect example of the type of debt that might be excluded from a bankruptcy filing.

A creditor who objects to their debts being discharged by bankruptcy will need to initiate an adversary proceeding. The creditor will file a complaint, which must be served, along with the summons, to the debtor. The complaint should list the facts describing the basis of the complaint and how they would like the court to remedy the issue. After being served, the debtor should file a response to the complaint and summons. Failure to do so within the applicable deadline will result in a default ruling against the debtor. If the debtor does respond, both parties will begin the discovery process. The parties can request more information from each other with depositions, interrogatories, requests for admission, and more. If the parties can’t resolve the matter out of court, the adversary proceeding will go to trial and the judge will rule on the issue.

Hopefully, you won’t have to deal with an adversary proceeding in your bankruptcy case. However, even if it’s unlikely that you will, it’s never guaranteed that objections and adversary proceedings won’t arise in your case. Filing for bankruptcy is less stressful when you know you are represented by qualified legal counsel in case you have to deal with issues like adversary proceedings. If you’re looking for quality bankruptcy representation in the Las Vegas area, contact our firm for your free consultation. We offer unbeatable service and flexible payment plans to fit your budget. Call 702-899-3328 for your free consultation today.

Experienced Bankruptcy Lawyers Delivering Results in Las Vegas, Nevada

Adversary proceedings and avoiding portrayals of wealth are just a few of the countless issues that could be relevant to your potential bankruptcy case. An experienced bankruptcy lawyer can help you navigate these kinds of roadblocks so your debts are discharged as fully and quickly as possible. Our firm works tirelessly to give our clients a positive experience of bankruptcy so they can move forward with a clean slate. There is no risk or obligation to get started- your initial consultation is 100% confidential and free of charge. Learn more about the bankruptcy process and decide if it is right for you based on information tailored to your situation. Schedule your free consultation today by calling 702-899-3328.