What is Shilo Sanders' current bankruptcy debt?

Shilo Sanders filed for bankruptcy with over $11 million in debt.

Why is Shilo Sanders in a dispute with his bankruptcy trustee?

The trustee claims Shilo Sanders made unauthorized transfers of NIL earnings, which Sanders' attorney disputes.

What are NIL earnings in Shilo Sanders' bankruptcy case?

NIL earnings are from Shilo Sanders' name, image, and likeness deals, which are central to the dispute.

Home / Sports / Shilo Sanders Fights Trustee Over $250K NIL Funds

Shilo Sanders Fights Trustee Over $250K NIL Funds

4 Dec

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Summary

Shilo Sanders disputes trustee's claim over $250K in NIL earnings.
His attorney argues funds generated post-bankruptcy belong to him.
The case is part of Sanders' Chapter 7 bankruptcy with $11M+ debt.

Shilo Sanders Fights Trustee Over $250K NIL Funds

Shilo Sanders, son of Colorado football coach Deion Sanders, is actively challenging a complaint filed by his bankruptcy trustee. The trustee alleges Sanders made unauthorized transfers totaling around $250,000, stemming from his name, image, and likeness (NIL) deals. Sanders' legal team asserts that these earnings were generated after he initiated his Chapter 7 bankruptcy proceedings and thus are not part of the bankruptcy estate. They argue these post-petition earnings, derived from entities like Big 21 LLC and Headache Gang LLC, are protected as part of his fresh start.

This legal maneuver is a significant component of Sanders' ongoing Chapter 7 bankruptcy case, initiated in October 2023 to address over $11 million in debt, largely due to a substantial court judgment. The trustee's role is to gather non-exempt assets for creditors, typically assets acquired before filing. However, Sanders' attorney contends that the law specifically excludes earnings from personal services performed after the bankruptcy filing begins.