Will Citi Financial come after my furniture?
My husband has to file for CP due to RBC trying to file a judgement against him. When we spoke to the trustee she thinks its a good idea that I file for one to as I have some credit card debt and a loan from Citi Financial. My question is when I got the loan with Citi they listed a bunch of my furniture as secured debt – if I file for CP will Citi come after all my furniture?
Posted from: Alberta
It is relatively common for financial institutions to secure against household furnishings or various household goods as security for loans. Although they do have the legal right to repossess and sell these good to apply proceeds to outstanding amounts, in practical terms it very rarely makes sense for them. The costs involved in going through the court and legal process to repossess and sell furniture is costly and time consuming, quite commonly not resulting in net proceeds to the creditor but actually costing them to go through the process. This means that creditors will commonly give up their right to those goods. If however you are worried that this may occur, you could continue to pay these loans to avoid the risk of any of the above happening, even though it very rarely occurs.