The Senate is on the way to approval of a landmark bankruptcy bill after turning down a controversial amendment that had held up the legislation since the Clinton administration.

The senators rejected an amendment introduced by Democrat Charles Schumer of New York designed to keep antiabortion demonstrators from using bankruptcy protections to avoid court-imposed fines. Having removed that obstacle, the Senate moved toward a final vote on the bill.

House Republicans, aiming at bringing down the number of individuals filing for bankruptcy, said they would approve the Senate bill next month in order to send it to the White House this spring. That would mean a significant victory for Mr. Bush, who has promised to support business in his second term.

Banks, credit-card companies and retailers have urged the Senate to elaborate a new bill, since it is too easy for consumers to go into debt and then bail themselves out using bankruptcy protections. According to the American Bankruptcy Institute, a research group, personal bankruptcy claims have increased to 1.56 million in the past decade.

The Senate bill would limit the ability of individuals to use Chapter 7 of the U.S. Bankruptcy Code to eliminate credit-card debt or certain loans, according to The Wall Street Journal. It would make those with the means to pay some of their debts to file under Chapter 13 of the code, enabling courts to impose a repayment plan.