Filing bankruptcy? Buying time to close a deal

[Denise James]

Homeowner wants to sell but the auction is in 2 days. 

A lot of investors in my area use the bankruptcy method to stop the auction and have more time to close the deal. 

I’ve never used this method. I usually send a copy of the contract to the lender and that always buys me enough time to close on the deal. 

However, if the homeowner files the chapter 13, do they have to go through the entire process a month later ? Or could they just dismiss it?

Would this be on the credit report of the homeowner if they only FILE the chapter 13 just to get more time to sell the house. 

Again, I’m not using this method, but I’m interested how this process works. 

Thanks in advance