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 Hawaii, repossession of property is governed by the state's version of Article 9 of the Uniform Commercial Code (UCC), which regulates secured transactions. When a debtor defaults on a secured debt, such as failing to make timely payments on a car loan, the creditor has the right to repossess the collateral property outlined in the credit agreement. The process must be conducted in a manner that is commercially reasonable and without breaching the peace. Hawaii law requires that the creditor provide the debtor with a notice of the right to cure the default, giving the debtor an opportunity to make up missed payments and avoid repossession. If repossession occurs, the creditor may sell the property to satisfy the debt, but must notify the debtor of the sale and provide a detailed accounting. If the sale proceeds exceed the debt owed, the surplus must be returned to the debtor. Conversely, if the proceeds are insufficient, the creditor may seek a deficiency judgment for the remaining amount owed.