If I have been approved for short sale program, can I still file Chapter 7 while the property is listed?

The short answer is yes.  However, filing bankruptcy entails certain complications.  Technically, filing a Chapter 7 transfers title to the real estate to the Chapter 7 Trustee.  Thus the Trustee will have to abandon the property before it can be sold.  What do you receive from the short sale?  Usually nothing.  If you need to file Chapte 7 you are probably better off going ahead and doing so.  Once you receive a discharge, you will be able to get on with your life.  My office handles bankruptcies.