WASHINGTON — The Senate passed legislation Thursday making it easier for banks, retailers, credit card companies and other creditors to recoup some money they're owed by many of the 1.5 million people who file for bankruptcy every year.

Eighteen Democrats and the Senate's lone independent joined Republicans in approving the bill on a 74-25 vote. Both Utah Sens. Orrin Hatch and Bob Bennett approved the measure. It goes to the House next month and on to President Bush, who made it a priority after the GOP increased its majorities in the election last fall.

"I applaud the strong bipartisan vote in the Senate to curb abuses of the bankruptcy system," Bush said in a statement. "Reforming the system with this common-sense approach, more Americans — especially lower-income Americans — will have greater access to credit."

Lenders had been pushing the legislation for eight years. They argued too many people with ability to repay at least a portion of the money they owe were walking away from all their debts under current law.

"Those who can pay their bills should pay their bills. That's the American way," said Sen. Orrin Hatch, R-Utah.

Democrats had succeeded in blocking the legislation year after year. They argued the changes advocated by Republicans would keep people who are overwhelmed by medical costs or loss of a job hopelessly in debt the rest of their lives.

"It will have a real impact on real people all over this country," said Sen. Russ Feingold, D-Wis.

Over the past two weeks, Republicans knocked down Democratic attempts to ease the impact of the legislation on people facing huge debts they cannot pay, including single parents, the unemployed and the ill.

Wall Street investment bankers won a provision that will enable the same firm to work for a company both before and after it files for bankruptcy. Securities and Exchange Commission Chairman William Donaldson opposed the measure; he said it would further undermine investor confidence already shaken by the Enron, WorldCom and other corporate scandals.

Supporters of the bill said bankruptcy often was the last refuge of gamblers, impulsive shoppers, divorced or separated fathers avoiding child support, and multimillionaires — often celebrities — who buy mansions in states with liberal homestead exemptions to shelter assets from creditors.

Each year, somewhere between 30,000 and 210,000 people — from 3.5 percent to 20 percent of those who currently dissolve their debts in bankruptcy — would be disqualified from doing so under the legislation, according to American Bankruptcy Institute estimates. The institute is a group of bankruptcy judges, lawyers and other experts.