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Shilo Sanders<\/a> 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.<\/p>\n According to a June 2 filing obtained by USA Today<\/em><\/a>, the financing arm of Mercedes-Benz is seeking permission from a federal bankruptcy judge to recover Sanders\u2019 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.<\/p>\n<\/div>\n 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.<\/p>\n 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.<\/p>\n \u201cThe 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,\u201d the company\u2019s attorney wrote in court documents. <\/p>\n The filing also states that Sanders owes $72,155 on the vehicle, while its estimated value is roughly $75,900.<\/p>\n