Are personal items that were appraised and taken to a dealer for sale with the money going to the trustee to dispurse tax deuctible.

Not if you are the person having the personal items taken, for that you are merely paying your bills, no different than writing a check to have the bill paid.

For the lender, if the item is sold, the amout he loses ( not fully paid for the loan) can be taken off as a bad debt.