"Cram down" secured debts that are worth more than the property that secures them. You can use Chapter 13 to reduce a debt to the replacement value of the property securing it, then pay off that debt through your plan. For example, if you owe $10,000 on a car loan and the car is worth only $6,000, you can propose a plan that pays the creditor $6,000 and have the rest of the loan discharged. Under the new bankruptcy law, you can't cram down a car debt you purchased the car during the 30-month period before you filed for bankruptcy. You also can't cram down a secured debt on other personal property you purchased within one year preceding your bankruptcy filing.