Reforming bankruptcy laws to crack down on borrowers could result in an average of 12% of filers repaying 74% of their debts, according to an Ernst & Young study released Tuesday.

By applying a needs-based formula to bankruptcy petitions in four major cities, Ernst & Young concluded that from 8% to 14% of Chapter 7 filers in the years 1991 to 1993 would have had to make repayments under Chapter 13- and could have repaid at least two-thirds of their "unsecured, nonpriority" debt over five years.

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