The current economy has many Americans struggling with their debt management and seeking help to resolve debt issues and even foreclosure. While it is good to seek help for debt management with a reputable debt management agency, Federal and State Agencies are warning homeowners to beware of “mortgage modifiers” who are defrauding consumers seeking to refinance or restructure their home mortgages.

According to government agencies, fraud is occurring involving companies with names that are official sounding and that are intended to lure clients into believing that they are somehow affiliated with the Obama administration or the Federal Governments mission to help homeowners caught up in the subprime loan fiasco. According to the FTC there are unscrupulous companies with some advertisements actually using the likeness of President Obama and references to his housing restructuring plan intended to lead homeowners to believe that they are dealing with a government sponsored affiliate.

Treasury Secretary Timothy Geithner has said that the fraudulent nature of these companies has garnered the attention of the Obama administration and that the misrepresentations they are now aware of will bring a speeded response from law enforcement. “We will shut down fraudulent companies more quickly than before,” said Treasury Secretary Timothy Geithner.

While it is important to address debt management issues, it is equally important to ascertain that you are dealing with a reputable non profit agency handling debt management or loan restructuring. “There is a definite need for homeowners to receive help from other than governmental sources, however it is in very clouded waters that people are swimming with a lot of sharks trolling,” said a Washington Community Reinvestment Coalition member.

The FTC (Federal Trade Commission) has sent warning letters to 71 agencies or companies that were running questionable advertisements and has filed three new complaints against companies offering mortgage restructuring.

In this difficult time we are all trying to be better debt managers, reducing our debt and restructuring budgets in order to deal with the troubled economy. For those who are facing foreclosure the necessity of debt management is no longer a choice, and is therefore so much more an important decision in your life. To secure one’s financial future and avoid financial disaster it is essential to be sure you are dealing with a reputable non profit organization that you have established checked the credentials of.

Homeowners that are in distress or possibly facing foreclosure can call for free counseling services or go online at www.makinghomeaffordable.gov , to speak to a mortgage restructuring counselor call (888) 995- HOPE (4673).

As Americans continue to struggle with the economy more and more evidence of the toll it has taken on families is showing up in bankruptcy courts all across the country. While most of America has been trying desperately to handle their debt consolidation problems with many even seeking the resources of debt management programs through credit counselors, it is more and more often leading to the last resort of bankruptcy.

There is some new hope being offered for those struggling with credit card debt through the new legislation being introduced by two Senate members. In January Sens. Sheldon Whitehouse, D-R.I. and Richard Durbin, D-Ill., introduced a bill seeking to give financially distressed consumers another source of intervention that would wipe out credit card debt for those that are forced into bankruptcy.

Consumer advocate groups that have been lobbying congress aimed at the FTC to crack down on the predatory lending practices of leading credit card companies and banks were successful in getting new legislation passed. The bad news is that they will not go into effect until next year for reasons that are not clear to consumer advocate groups who lobbied for more stringent reprimands and immediate actions.

The bill is aimed at the credit card companies who raise the interest rate higher than the 18.5 percent currently allowed, through increased penalty rates and fees, which is seen by congress as pushing more people into bankruptcy. The bill is meant to give consumers who are struggling to avoid bankruptcy more leverage with their creditors, as they would have their credit card debt wiped out if they are forced into bankruptcy and therefore creditors are more apt to make reasonable settlement agreements with the consumer.

Under the current bankruptcy laws for those filing Chapter 7 or Chapter 13 you would still be obligated to pay your credit card debt as well as your secured debt. This bill would eliminate that provision in the law that mandates that consumers who meet a certain income requirement must file Chapter 13 (instead of Chapter 7 which requires them to use only their liquidated assets to pay off debts), which requires them to agree to using their future income to pay off their debts. With this provision gone credit card companies would certainly be more prone to working with their customers rather than to see the account go into bankruptcy, where they could receive little or no payment at all.

Send your emails in support of this bill to The Federal Trade Commission, the Office of Thrift Supervision and the National Credit Union Administration or the Senate Judiciary subcommittee regarding the measure that would wipeout credit card debt for people filing for bankruptcy sponsored by Sens. Whitehouse and Durbin.

Debt management is on the tip of everyone’s tongue these days, with the current economy and most Americans struggling with their debt management, not to mention the unemployment fears most every American is feeling, a little good news from the Federal Government would be welcome to all, or almost all.

Under the Obama administration most American families will receive a tax cut and their lower income counterparts would see even bigger tax cuts, or in some cases a check. However, those who fall under the wealthier tax code are in for some unpleasant increases, especially in 2011 when the President’s tax increases on those families or businesses making more than $250,000.00 go into effect to pay for the tax deductions for those making less. The individual filers making more than $200,000.00 a year will also be in for the increased tax rate as well. Income tax penalties are also of great concern for many as well.

The majority of individual’s tax cuts being made by Obama’s proposed budget will be permanent in nature and are seen as a way of helping families and the poor struggling with debt management. The President promised voters that he would give the people on the lower end of the economic scale a break and he has done that, although experts speculate as to how much it will actually help the little guy with their debt management.

On the other end of the scale those who are in the higher tax bracket who currently pay 35% of their earned income into taxes will see that figure rise to almost 40 cents for every dollar they earn in 2011, when Bush’s tax cuts will be rescinded. Also to be included in the new tax structures to be rescinded are many itemized deductions for; charitable donations, state and local taxes, and mortgage interest. Many charitable foundations who are already battling with their debt management in a troubled economy and losses to the Madoff Ponzi scheme are concerned that relied upon donations will see a heavy decrease once the new tax plan goes in to effect.

As the saying goes, you can’t please all the people all the time, but it is fair to say that the majority of tax payers will be glad for any help they can get with their debt management no matter how small the deduction is or rebate check. As for the wealthy, well there are even some who say it is alright with them to have to pay more in taxes if it goes to help those who are less fortunate with their debt management; it just might be a little hard to find them unless you’re living in Hollywood or Palm Beach though! If you’re seeking someone to represent you in your effort to find tax relief look no further then TaxRelief.net. They’re a very reputable tax resolution specialist.