Warren would replace the two chapters, giving distressed borrowers the chance to either surrender their property to have their debt discharged, along the lines of Chapter 7, or choose from a “menu of options” to restructure specific debts while continuing to pay down others outside bankruptcy.

Student loan debts would be dischargeable; under current law, those loans are only forgiven in cases where they are found to cause “undue hardship” for the borrower.

Filers who select a prepayment plan, meanwhile, would be able to set aside more money to cover normal costs under her proposal, which would also allow borrowers to modify their mortgages in bankruptcy. And the plan would eliminate the 2005 requirement that borrowers get pre-filing credit counseling.

Warren and Biden have long been at odds over bankruptcy. As a U.S. senator from Delaware, Biden was one of the marquee Democrats to support the 2005 Republican legislation meant to crack down on soaring bankruptcy rates.

Warren, then a Harvard law professor who made her name in bankruptcy law, had lobbied against the bill for years, arguing that lenders were at fault and borrowers shouldn’t be punished.

“I lost that fight in 2005, and working families paid the price,” Warren wrote Tuesday.

“There are still serious problems with our bankruptcy laws today, thanks in large part to that bad 2005 bill,” she added. “That’s why I’m announcing my plan to repeal the harmful provisions in the 2005 bankruptcy bill and overhaul consumer bankruptcy rules in this country to give Americans a better chance of getting back on their feet.”