Lehman Brothers Financial SA (LEHNQ)

[zulual]

"The Co-Debtor’s liability for the debt is not discharged
The Co-Debtor’s obligation to pay the creditor are not altered or discharged by the Co-Debtor Stay. The Co-Debtor stay only postpones the creditor’s collection actions until after the bankruptcy is over. The Co-Debtor is protected during the life of the bankruptcy, but once the bankruptcy is over, the co-debtor remains liable for the unpaid debt. For example, if the bankruptcy payment plan pays 25% of the debt, the co-debtor remains liable for the other 75% of the debt. For this reason, some bankruptcy payment plans provide for payment of joint debts in full in order to protect the co-debtor after the bankruptcy case is over." From Brian Hemphill, Attorney at Law