When someone files for bankruptcy, they may think they will literally lose everything to creditors. They have nightmares of wages garnished to the point where they will not be able to to put food on their plate. This is simply not accurate. In fact, in many cases, your personal bank accounts are free of the risk of garnishment if you file for Chapter 7 bankruptcy by virtue of the provision of automatic stay.
However, if your bank or credit union account balance is more than a permissible exemption limit (for example if your account holds $20,000 whereas the exemption limit is only up to $12,000) and the bank is owed money from you, the bank can “freeze” your assets in that account. The bank simply has to send a notice to you and the bankruptcy trustee stating that your account is in “bankruptcy status” and the money is frozen and payable only upon the express direction from the bankruptcy trustee. But, if your account has less than $12,000, then that amount is exempt (i.e. you keep it).