Lackey v. Steere

Citations

• 121 Ill. 598

Syllabus

<p>1. Bankruptcy—disehargein bankruptcy—effect-upon surety amd others liable for the same debt. A discharge in bankruptcy does not release, discharge or affect any person liable for the same debt with the bankrupt, either as partner, joint contractor, surety or otherwise.</p> <p>2. Sam®—judgment pending proceeding, and satisfaction out of subsequently acquired property. A judgment obtained against a bankrupt in the State court, pending a proceeding by him in the United States Court for a discharge in bankruptcy, is valid, notwithstanding his subsequent discharge. The bankrupt, after his discharge, may apply for and have a stay of the execution of the judgment. If he suffers execution to be issued and his subsequently acquired property to be sold, the sale will be valid, and operate as a satisfaction both as to the bankrupt and his surety, when the judgment is against both.</p> <p>3. Chancery—setting aside satisfaction of judgment—as to one not a party. P ending a proceeding in bankruptcy, judgment was recovered against the alleged bankrupt and his surety. There being no stay of proceedings under the judgment after the discharge, after acquired lands of the bankrupt were levied on and sold in satisfaction of the judgment. Subsequently, the bankrupt, on bill filed for that purpose, to which the surety was not made a party, obtained a decree setting aside the sale and satisfaction of the judgment: Held, that the decree in nowise affected the surety, but that his rights remained the same as if no decree had ever been rendered.</p>