Repossession of property is the process by which a creditor recovers possession of the property when the debtor defaults on the debt by failing to make the required installment payments on time. Repossession is often used by a creditor who has extended credit to a debtor for the purchase of personal property, such as a motor vehicle, boat, machinery, equipment, tools, artwork, jewelry, or rent-to-own furniture or electronics.

The creditor’s right to repossess the property usually comes from the credit financing agreement the debtor signs when purchasing or renting-to-own the property.

Laws governing creditor and debtor rights and obligations—including the right to repossess property—vary from state to state and are usually located in a state’s statutes—often in the state’s adopted or enacted version of Article 9 of the Uniform Commercial Code, governing secured transactions.

In California, repossession of property is governed by the state's version of Article 9 of the Uniform Commercial Code (UCC) as well as other relevant state laws. When a debtor defaults on a secured debt, such as an auto loan or a rent-to-own agreement, the creditor has the right to repossess the collateral property without judicial process if it can be done without breach of the peace. The credit agreement signed by the debtor typically outlines the terms under which repossession can occur. California law requires a creditor to provide the debtor with a notice of default and the opportunity to cure the default before proceeding with repossession. After repossession, the creditor must provide the debtor with a notice of intent to sell the property and give the debtor the opportunity to redeem the property by paying the full debt plus any reasonable expenses incurred. If the property is sold, the debtor may be entitled to an accounting of the sale and may be liable for any deficiency if the sale proceeds are less than the outstanding debt. It is important for both creditors and debtors to understand their rights and obligations under California law regarding repossession.