To be short of means up to but not including the condition specified, to not have enough of something. A used expression (I dare say common) is
I'm a little short.
I don't have enough money to pay the full amount at the moment.
which is not talking about height or stature.
In your example, the writer is saying only backruptcy will stop the financial problems, anything less than that (short of) will not help.
Nothing short of a miracle will help.
Only a miracle will help
I'm short of a dollar.
I have a dollar less than is needed to pay
She's one card short of a full deck.
She's not all there, she's crazy.
He's short of the mark.
He was not able to attain his goal.
He does not have adequate abilities.
Anything short of perfection will not do.
Only perfection is acceptable.