However, it is possible and maybe beneficial to the seller to have the house excluded from the bankruptcy. If they included it inadvertently it can also be removed from the filing. I just had this happen to me on a transaction and it took about thirty days to release it from the bankruptcy filing. In that time we continued to pursue the short sale approval and received the approval subject to the release. So everything worked out.
It did cost the home owner some extra money to have his attorney do the filing. Best of luck!