More than 5% of consumers who eliminate their debts in Chapter 7 have the ability to completely repay creditors within five years, according to two business school professors. John M. Barron of Purdue University and Michael E. Staten of Georgetown University also find that one-quarter of Chapter 7 filers could repay at least 30% of their debts within five years.

Of borrowers who agreed to repay some debts by filing for Chapter 13, the researchers find half could pay off two-thirds of their debts and still cover housing costs.

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