No one likes to see an icon die.  Chapter 11 and restructuring may be the best options for Jolt or any business that still wants a shot a saving their business.  Restructuring can literally give any organization that little “Jolt” it needs to get moving again.  At the same time, it frees up cash flow so that a business can invest in the materials or services it needs to operate.  In Jolt’s case, they need to invest in product development and review ways to distribute their product for a better price to remain competitive.  If you are operating a small business that is struggling to get to that new phase of competitiveness, a Chapter 11 bankruptcy is the best option.

However, if you goal is to maintain a status quo, restructuring may not be your goal.  The challenge that Jolt has is that they are still lamenting on the glory days when they were on top of their industry.  Unfortunately, they aren’t there anymore.  If they continue to rely on the same business strategies, a restructuring of debt through bankruptcy is a wasted effort because they are missing opportunities to rebuild.  Similarly, in personal bankruptcy you have to make the same decisions.  Most of us would like to go back to buying what we want, whenever we want it, after bankruptcy.  Bankruptcy was not designed as a get out of debt free card.  It was designed as a way to help people get back on track.  But staying on track after bankruptcy means avoiding the same bad habits that lead to huge debt ratios to begin with.  While you go through the bankruptcy process, take advantage of the required counseling classes and the new internet age to develop new strategies to spend wisely and save more.

The WSJ article does note that Jolt may end up being sold through the bankruptcy process.  If they are just trying to cut their losses and get their creditors paid, this may be their best option.   When it comes to your personal finances, the main idea to learn from the Jolt experience is that options are available, even within the bankruptcy process.  Depending on your long term goals and your current financial situation, you can file different types of bankruptcy.  Contact a qualified bankruptcy attorney in your area today to learn which is best for you.