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Mercedes‑Benz Seeks Court Permission to Repossess Shilo Sanders’ Mercedes

The move asks the court to lift the bankruptcy stay to let Mercedes‑Benz reclaim a depreciating asset to protect its collateral value.

Overview

  • Mercedes‑Benz filed for relief from the automatic stay on June 2 to repossess a 2023 Mercedes tied to Shilo Sanders’ Chapter 7 case so the lender can pursue collection despite the bankruptcy protection.
  • The company says Sanders is in default for about $9,169.56 for missed payments from February through May 2026 and that the loan balance of roughly $72,155 leaves little equity against an estimated vehicle value of $75,900.
  • This is the second repossession effort over the same car since April 2025, when a prior claim was settled after Sanders made a payment and the vehicle was not taken.
  • The repossession request comes alongside active bankruptcy litigation: a trustee is pursuing roughly $250,000 in disputed NIL transfers and a trial is set for August 31, 2026 to decide whether an $11.89 million judgment to creditor John Darjean can be discharged.
  • A court decision on Mercedes‑Benz’s request is pending and, if granted, could remove the car from Sanders’ estate and narrow his options for a financial fresh start while other creditor claims continue to play out.