I don't intend to conflict with Emily's response but I just went through this exact scenario with 4 sellers on 2 different properties who were, like you, co-owners and co-borrowers. Yes, you can do a short sale. However, if your either "borrower" files BK and includes the property in their filing, the lenders on this property CANNOT speak with anyone including a Listing Broker about the property until the property is released from the BK by the court rendering a short sale impossible.
On one of the properties I work on for almost a year, the seller filed BK the day before we would have gotten approval unknown to us. The lender called to tell me they were going to approve it BUT, now that a BK had been filed, they could no longer talk to me. That property fell out of escrow, 6 months ago and is sitting vacant while the BK court makes a decision.
On the other one, one party filed BK without the other knowing even though they were "friends" and now that property is in limbo until BK court decides - likely 9 - 12 months from now.
If you can sell without any BK filing, you have a chance, otherwise it will be impossible. With 50+ short sales completed last year, believe me, I know all about homeowners filing BK while trying to sell !
Best of luck,
Broker / REALTOR