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Bankruptcy figures for the two years to March 2001 clearly show the "first casualties of the new taxation system", and provide a warning that worse may be to come. Based on the results of a two year bankruptcy survey, a two-and-a-half year debt collection survey, along with recent trade payment figures and a business expectations survey, Dun & Bradstreet believe it likely that bankruptcies, debt collection claims and average payment days will further increase this year. "It would seem that many business owners have simply run out of cash in the bid to meet their quarterly tax obligations and pay their creditors on time," managing director of the business information services provider D&B, Christine Christian, says. "We know many businesses are struggling to pay their bills on time and these latest figures seem to indicate that many of them have now given up altogether. "There comes a point in the cash flow cycle where there is simply not enough to go around. Bankruptcy is the sad conclusion for many individuals not in a strong enough position to weather the crisis," she says. D&B's report shows the average number of bankruptcies in the first quarter of 2001 was 32.9% higher across all states compared with the first quarter of 2000. They rose markedly from January to March 2001, jumping 22.2% over the previous December quarter. Claim statistics show the number of claims lodged with D&B for debt collection in the 12 months to 30 November 2000 rose by 227% compared with the previous 12 months. The total amount in dollars placed in claims over this period also climbed by a national average of 144%. Claim numbers and total claim dollars rose further in the first quarter of 2001, Christian says. "When compared with the same period the previous year, the total number of claims in the four months from December to March 2001 climbed 111%. In dollar terms, the increase was 195%," she says. "These figures, when stacked up against the 32.9% increase in bankruptcies over the same period, would seem to confirm the post-GST pain being felt in the community. "What we are talking about here are individuals and small business operators who can no longer meet their debt obligations – the milk bar, butcher and hardware shop owners for example."