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Shilo Sanders Faces Mercedes-Benz Repossession Request in Bankruptcy Case
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 Shilo Sanders Lawsuit Reopens Repo Bid Over $9,170
The mercedes benz shilo sanders lawsuit took another turn on June 2, 2026, when Mercedes-Benz asked a federal bankruptcy court to let it repossess Shilo Sanders’ $135,000 car again. The company says he is $9,170 behind on monthly payments and that the vehicle is losing value while the bankruptcy stay keeps it in place.
Mercedes-Benz put the default at $9,169.56, a figure that covers amounts past due from February through May of 2026. In the filing, the company also said the car’s outstanding balance is $72,155 and its estimated value is $75,900.
That gap is small, but Mercedes-Benz told the court the vehicle is depreciating in value and that it is being blocked from exercising its remedies. The attorney’s filing said, “The motor vehicle is depreciating in value, the contract is in default and the movant (Mercedes-Benz) is being prevented by the automatic stay from exercising its remedies to repossess and liquidate its collateral, the motor vehicle.”
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Report: Mercedes-Benz seeks to repossess Shilo Sanders' car for defaulting on payments
Shilo Sanders could have his $135,000 car repossessed if a federal bankruptcy court rules against him. The financial services arm of Mercedes-Benz filed a request Tuesday with the court overseeing Sanders’ bankruptcy claiming the 26-year-old son of Colorado head coach Deion Sanders is in default and more than $9,000 behind on his monthly payments, according to USA Today.
This is the second time in the last 14 months that Mercedes-Benz has filed a repossession claim for this vehicle after making a similar request in April 2025, which was resolved through repayment without having it repossessed at the time, per court records obtained by USA Today. The filing was necessary to get around the court-mandated stay on any dept collection efforts due to his ongoing bankruptcy claim.
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