This question arose from using the TrueCrypt disk encryption software. When a file or folder is deleted from a file system, usually its just the link to that object that is deleted. Operating systems with a trash can/recycle bin facility record this deletion operation and allow for restoration of that object. So, if I have created an encrypted file system within a file and mounted it all using TrueCrypt and then deleted a file or folder within that encrypted volume, would the file still be encrypted? I want to say yes since the file is not actually moved into a trash (area which might not be in the encrypted volume), only a log of its deletion is kept there.