The Federal Government is proposing changes to the Bankruptcy Act which will mean creditors won't be able to take bankruptcy action against debtors who owe them less than $10,000. Currently the minimum debt is $2,000.

If you supply goods or services to consumers, sole traders or partnership entities you will need to be very careful when extending credit as this change to personal bankruptcy will limit your enforcement options.

Read the Courier Mail article " Creditors Get Debt Raw Deal"