The bankruptcy trustee is coming for Shilo Sanders hard, demanding a quarter million dollars back. That money came from his name, image, and likeness deals funneled through his companies, Big 21 and Headache Gang. This whole mess stems from an old lawsuit where a former school security guard, John Darjean, won a huge judgment against him for an incident back in 2015. Sanders filed for Chapter 7 bankruptcy last year when Darjean tried to collect.
The trustee, David Wadsworth, just shot down Sanders' attempt to kill the case. His attorney stated flatly that Sanders' legal team was wrong about the nature of the funds. They argue that not all NIL cash is protected just because it hit the accounts after the bankruptcy filing. A footnote in the filing points out some money was already sitting there when he filed. They also claim contracts signed before the filing could make later deposits fair game for creditors.
Sanders' lawyer had claimed the earnings were all post-bankruptcy income belonging to him personally. The trustee countered that this argument lacks support and the facts need a deeper look. With the trustee refusing to back off, the court now has to untangle the timeline of those NIL payments. Meanwhile, Darjean is fighting to keep the massive debt from being wiped out, calling the injury willful. Another lawsuit over unpaid legal fees is still hanging out there, too. This thing is nowhere near done.
The trustee, David Wadsworth, just shot down Sanders' attempt to kill the case. His attorney stated flatly that Sanders' legal team was wrong about the nature of the funds. They argue that not all NIL cash is protected just because it hit the accounts after the bankruptcy filing. A footnote in the filing points out some money was already sitting there when he filed. They also claim contracts signed before the filing could make later deposits fair game for creditors.
Sanders' lawyer had claimed the earnings were all post-bankruptcy income belonging to him personally. The trustee countered that this argument lacks support and the facts need a deeper look. With the trustee refusing to back off, the court now has to untangle the timeline of those NIL payments. Meanwhile, Darjean is fighting to keep the massive debt from being wiped out, calling the injury willful. Another lawsuit over unpaid legal fees is still hanging out there, too. This thing is nowhere near done.
