prepaid mastercard

March 4th, 2008 by Questions

I have a question regarding a recent post about a pre-paid Mastercard. I`m confused as to why this would need to be turned into the trustee – it is NOT a credit card. It is a card that you put money on and you can spend what you put on, similar to a card that you can reload at a coffee shop or clothing store. I had one and was told by my trustee that I did not need to surrender it as it was not a credit card.
The advice given on here was that it must be given to the trustee and I wonder if the person who responded was just not familiar with the card, and if he is familiar, why would my trustee tell me it was ok to keep?


One Response to “prepaid mastercard”

, A licensed trustee said:

Here’s the short answer: your prepaid MC is NOT a credit card, it is a charge card so most trustees will tell you they don’t have to take it.

BUT the balance on the card represents an asset that your trustee is required to turn into cash. If your balance is less than $50 most trustees will simply say, “keep it”. Technically, even if there is only $1 on the card it should be turned over to your trustee and cashed out for your creditors.

I hope this clears things up.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)