Yes. Chapter 7 is legitimate way to delay foreclosure in your advantage and protect your equity. The delay it will give you is usually 2 to 4 months, with the added help of discharging most of your unsecured debts in the process.
Sources:
http://www.wtslawgroup.com/CM/FAQs/Mortgage-Foreclosure-FAQ.asp
http://dunnelawoffices.blogspot.com/
