Shilo Sanders is facing a new financial challenge in bankruptcy court after Mercedes-Benz moved to repossess his luxury vehicle, just weeks after a separate lawsuit over alleged unpaid legal fees was quietly dismissed.
According to a June 2 filing obtained by USA Today, the financing arm of Mercedes-Benz is seeking permission from a federal bankruptcy judge to recover Sanders’ 2023 Mercedes-Benz, alleging he has fallen behind on payments once again. The company claims Sanders is currently in default by approximately $9,170, covering missed payments from February through May 2026.
The filing marks the second time in a little over a year that Mercedes-Benz has sought relief regarding the vehicle. A similar dispute surfaced in April 2025, but court records indicate that the matter was resolved after payment was made, allowing Sanders to keep the car.
Mercedes-Benz argues the situation is different now because Sanders remains protected by the automatic stay that went into effect when he filed for Chapter 7 bankruptcy in 2023. That stay prevents creditors from pursuing collection efforts without court approval.
“The motor vehicle is depreciating in value, the contract is in default and the movant is being prevented by the automatic stay from exercising its remedies to repossess and liquidate its collateral,” the company’s attorney wrote in court documents.
The filing also states that Sanders owes $72,155 on the vehicle, while its estimated value is roughly $75,900.
The latest development arrives shortly after another legal headache disappeared. A law firm that had previously sued Sanders over more than $164,000 in alleged unpaid legal bills related to his bankruptcy and other litigation has dropped its case.
While that lawsuit is no longer active, Sanders remains entangled in several other disputes connected to his ongoing bankruptcy proceedings.
The bankruptcy case itself stems from a much larger financial obligation. Sanders filed for protection in October 2023 after being hit with an $11.89 million default judgment in a Texas civil case.
The lawsuit was brought by John Darjean, a former school security guard who alleged Sanders caused severe injuries during a 2015 incident when Sanders was a teenager. Sanders has consistently maintained that he acted in self-defense.
Darjean is continuing to fight Sanders’ attempt to discharge the debt, with a trial scheduled for August 31. Separately, a bankruptcy trustee is pursuing claims related to approximately $250,000 in disputed transfers involving Sanders’ NIL-related businesses, Big 21, and Headache Gang.
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