Suggest creative financing strategy for this situation?

[Greg Woolsey]

There is a couple who filed bankruptcy. They have a home worth ~ 82K. They owe 55K that they used a hardmoney lender for a 5 yr loan @ 11% with a balloon payment. They don't have the resources to pay the balloon when it's time comes. They have 2 yrs of good payments on the hardmoney loan.
Can they sell the house for 55K, then buy it back for 65K so they can avoid the balloon?
They want to pay it completely in 8 years.
They have 35K equity.
Any creative and legal suggestions?