Can a creditor take my furniture if I’m doing a debt proposal?

This is something we see on a fairly regular basis. There are several creditors that will register on property registries as having collateral on furniture and various household items. The simple answer, is yes, they have the legal ability to repossess that furniture and use the sale proceeds to pay down the debt. Practically we don’t see that happen as the costs involved for creditors to collect and sell that furniture can be significant and it sometimes costs as much as the furniture is worth when sold. Ultimately it will depend on the value of the furniture listed as collateral and the amount of the loan, in speaking with a trustee, they would be able to provide more accurate information in these specific circumstances.