Bankruptcy Battle Ensnares Colorado Safety Shilo Sanders Over Privacy Concerns
Introduction
The bankruptcy case of Colorado football safety Shilo Sanders has taken a contentious turn as the player seeks to protect his financial privacy while facing a massive $11 million debt.
The Debt and Allegations
Sanders, son of Colorado coach Deion Sanders, owes the vast majority of his debt to John Darjean, a former security guard at his school in Dallas. In 2022, Darjean obtained a default judgment against Sanders for allegedly injuring him at the school in 2015, when Sanders was 15. Sanders maintains he acted in self-defense, but his absence from the trial resulted in the hefty judgment.
Sanders’ Privacy Plea
Seeking a fresh start, Sanders filed for Chapter 7 bankruptcy in October 2023. His attorney, Keri Riley, has requested a protective order to prevent the public dissemination of certain sensitive financial information, such as bank statements and NIL (name, image, and likeness) deal details. Riley argues that such disclosures would violate Sanders’ privacy and harm his business partnerships.
Darjean’s Opposition
Darjean’s attorneys have vehemently opposed the protective order, claiming it is overbroad and would impede the discovery process. They point out that Sanders has a significant social media presence and frequently flaunts his wealth and whereabouts, making the privacy concerns less legitimate.
Trustee’s Objection
The bankruptcy trustee has also objected to Sanders’ proposed protective order, arguing that it places an undue burden on the trustee and creditors in making public filings.
Legal Considerations
Bankruptcy proceedings are typically public records, ensuring transparency and fairness. However, exceptions can be made for sensitive information. The judge in the case, Michael E. Romero, has emphasized the public nature of bankruptcy proceedings but will consider Sanders’ privacy concerns.
Sanders’ Proposed Protective Order
Sanders’ attorney has proposed a protective order that would allow certain discovery evidence to be designated as confidential if the designating attorney believes it contains non-public information. Darjean’s attorneys argue that Sanders has failed to show good cause for such an order.
The Importance of Discovery
Discovery in bankruptcy cases is crucial for collecting non-exempt assets and determining the validity of debts. A protective order that overly restricts discovery could hinder these processes.
Sanders’ Future Prospects
Sanders has finished his final college season and hopes to pursue a career in the NFL. If the court discharges his debt, he will face fewer financial burdens. However, if the debt is not discharged, his future earnings could be subject to collection efforts by Darjean.
Legal Battle Continues
The bankruptcy battle between Sanders and Darjean is ongoing, with the judge set to rule on the protective order request. The outcome of this case will have significant implications for Sanders’ financial future and the rights of individuals seeking privacy in bankruptcy proceedings.
