Since I am replacing the furnace and increasing the size of the bathroom I was able to remove the bathroom ceiling and the hallway ceiling to open the rooms up.
I am going to be adding a linen closet against the short wall of the bathroom to help disguise the new ductwork.
The ductwork was moved to the other side of the wall separating the bedrooms from the hallway. I am planning on using sliding doors so that the doors will stack in were there are just a few studs left in that wall. This will allow the bedrooms to feel open to the rest of the house. By moving the ductwork I am able to use the same small soffit to hang the door track and run the ductwork. I also got rid of the extremely low ceiling hallway.