Shilo Sanders’ bankruptcy case sees new development as judge grants protective order

The legal battle surrounding Shilo Sanders’ bankruptcy case took an interesting turn on Wednesday when a federal bankruptcy judge issued a limited protective order regarding certain aspects of his financial records. Judge Michael E. Romero scrutinized the request from Sanders’ legal team, questioning why details such as his business dealings and bank statements, which could even reveal trivial expenditures like frequenting McDonald’s, should be shielded from public scrutiny.

During the hearing in Denver, Judge Romero reminded Sanders’ attorney that his client voluntarily entered bankruptcy proceedings in 2023 in an effort to free himself from over $11 million in debt. The judge was particularly skeptical about the need for privacy concerning past bank statements, questioning whether shielding such details truly warranted legal protection.
“So you’re saying there’s a need for protection to find out how many times your client went to McDonald’s in 2023—that it’s important that we protect the bank statements on that because it’s listed on his accounts?” Judge Romero remarked according to USA Today.

Attorney Keri Riley, representing Sanders, argued that the main concern was preventing sensitive financial details from being disseminated on social media, potentially fueling negative narratives against her client.
At the center of the case is an $11.89 million judgment against Sanders, awarded to John Darjean, a former security guard at his Dallas high school. The judgment stemmed from an incident in 2015 when Sanders, then 15, was accused of causing severe injuries to Darjean while resisting an attempt to confiscate his phone. The case went to trial in 2022, where Darjean secured a default judgment after Sanders did not appear to defend himself. In October 2023, Sanders filed for Chapter 7 bankruptcy, seeking to have the debt discharged.
However, Darjean’s attorney, Ori Raphael, has been adamant that Sanders should not receive special treatment. “Nothing is special about what he’s done,” Raphael asserted during the hearing. “Nothing makes him unique. The only thing that’s unique is he’s chosen to be bankrupt and come to this court to say, ‘Oh, I’m special, so I shouldn’t have to reveal anything I’ve done.’ You chose this path. You have to therefore accept it.”
As the case progresses, a key point of contention remains how much privacy Sanders should be afforded while disclosing his financial records. Darjean’s legal team has pushed for transparency, arguing that bankruptcy court is a public process meant to ensure fairness for creditors.

Despite his initial skepticism, Judge Romero ultimately found “good cause” to grant Sanders some privacy protections. The five-page order stipulates that designated discovery materials may only be used for case-related purposes and cannot be broadly shared, particularly on social media.
Sanders’ legal team argued that excessive public exposure of his financial records could hinder his ability to secure future endorsement deals and earnings, especially as he hopes to be selected in the upcoming NFL draft. “As somebody who does have at least somewhat of a public presence, when this content is created that is targeting him in a negative way… it’s doing nothing more than impacting his ability to get future deals,” Riley stated.
With the protective order now in place, the case is expected to proceed toward trial, with both sides preparing for legal battles on multiple fronts. If Sanders is unable to get the debt discharged, Darjean could continue efforts to collect the full amount. Meanwhile, a bankruptcy trustee is working to gather Sanders’ non-exempt assets to distribute among creditors.
“We’re still trying to get all of those NIL contracts, Your Honor,” said Peter Cal, attorney for the trustee, highlighting ongoing efforts to assess Sanders’ financial obligations and potential assets.
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As the proceedings unfold, the legal and financial implications for Sanders remain significant, with his professional future hanging in the balance.