Secured card deposits - Do I get them back?

[BadCreditisMe]

Hi All,

Filed Chapter 7 (341 on 12/13). Included are two secured cards with deposits (BOA deposit: $99, Capital One: $49). Do I get those deposits back or do the creditors keep and apply it towards balance? Not sure how this works.

Thanks!

[StartingOver10]

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@BadCreditisMe wrote:

Hi All,

Filed Chapter 7 (341 on 12/13). Included are two secured cards with deposits (BOA deposit: $99, Capital One: $49). Do I get those deposits back or do the creditors keep and apply it towards balance? Not sure how this works.

Thanks!

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The deposits would be considered an asset of your bk.  Do you have an attorney?  Check with your attorney. Your attorney would know where the funds go if you are not able to protect those funds in your BK.  I suspect that they would go to the trustee as that is part of the trustee's job - to collect funds for all of your creditors. 

[holmesnmanny]

The credit card is secured to the funds similar to the way an auto loan is secured by the car. You will only get back whatever is left over after applying the funds to the balance. You would need to use an exemption on the leftover funds.