Advocates for creditors and debtors disagreed sharply Wednesday over how to reform the consumer bankruptcy system, though both sides conceded that some changes are warranted.

At issue is a bill in the House that would prevent consumers from eliminating all their debts under Chapter 7 if they could afford-after deducting living expenses-to repay at least 20% of their obligations over five years. The bill exempts those earning less than 75% of the median income.

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