I’ve had to write hardship letters to my mortgage company and other debtors because I have had to use ALL of my money and borrow some to retain the contractor.

This can come from passive income boosts or by paying down debt, or some combination of both.I have about $210k in debt with about $1725 of monthly paments.

For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

The suit arose when a debtor tried to invoke the Act to force the foreclosing law firm to cease collection efforts until it obtained verification of the debt and mailed the verification to the debtor.

So, how feasible, (assuming he is on board), would it be to have my father in law buy a house for my family to live in and give us a rent to own type deal where we are paying the mortgage and insurance on it, via him, so that it doesn’t really show up as debt?  or

What you're describing is some kind of perpetual, non-callable debt that doesn't have a stated interest or discount, doesn't obligate the debtor to make payments, and allows the debtee to share an agreed upon percentage in the profits of the property. 

If less than 65%, why discount the note when you could simply tighten up the screws by letting the debtor know the clock is ticking. 

It may make sense to pay things off and live off the cash flow with no debt or worries but I think you're too young for that.

You will get paid out of the BK a proportion fo the amount based on the total unsecured debt and the amount of funds available from the debtor.

You can't ignore this, as your credit is on the line since the PM sent this to collections with you as the debtor.