President Bush said Monday that the legislation to revamp the nation's bankruptcy laws offered "commonsense reforms" that would curb abuses. In the House, the chairman of the Judiciary Committee, Rep. James Sensenbrenner, R-Wis., has proposed identical legislation.

Senate Democrats, many of whom support a bankruptcy overhaul but oppose the 500-page bill as written, have prepared many amendments. For example, Sen. Russ Feingold, D-Wis., proposed on Tuesday that older people get special homestead exemptions allowing them to keep their homes when they file for bankruptcy. Currently, such exemptions are determined by the states.

Democrats also are considering trying to attach to the legislation an increase in the minimum wage.

Supporters hope for passage before lawmakers adjourn in mid-March for the spring recess. They say they are heartened by the swift passage two weeks ago of a bill aimed at discouraging class-action lawsuits.

Banks, credit card companies and retailers have pushed since 1997 for a bill overhauling the bankruptcy laws. Consumer and civil rights groups and unions say the legislation would shred a safety net for those who have lost their jobs or face mounting medical bills.

Personal bankruptcies appear to have broken the upward trend of recent years, slipping 0.8 percent in the 12 months ending June 30, the most recent figures. Some experts say the decline means that while the level of bankruptcies is still high compared with four years ago, some consumers finally have been able to benefit from an improving economy and low interest rates.