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.