Formerly, the US fourth largest bank will now be able to dispose its remaining assets and pay nearly $65bn (£41bn) to the creditors and investors from 17 April this year, the bank said.
Lehman will continue to operate from midtown Manhattan headquarters and will make periodic distributions in the future as it disposes its remaining estimated $30bn worth of assets, as reported by Reuters.
The bank, which owns nearly $35bn in cash, will pay $10bn to the first group of investors, and a second payment to creditors will take place in September 2012.
Now the bank will no longer have to obtain court permission for every asset sale but the court process will continue for years due to various claims and lawsuits.
Several lawsuits related to Lehman bankruptcy are expected to go to trial, including with JPMorgan Chase and Nomura Holdings.
Due to huge losses in the US sub-prime mortgage market, Lehman went bankrupt on 15 September 2008, which was widely seen as one of the prime factor of the global financial crisis.
