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 Indiana, 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 loan by failing to make timely payments, the creditor has the right to repossess the collateral, such as vehicles, boats, or other personal property, without judicial process if it can be done without breach of the peace. The credit agreement signed by the debtor typically outlines the rights of the creditor to repossess the property upon default. Indiana law requires that the repossession process be conducted in a manner that is reasonable and does not involve violence or come into the debtor's home without permission. After repossession, 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 and expenses, the surplus must be returned to the debtor. Debtors have the right to redeem the property before the sale by paying the full amount due, including any reasonable expenses incurred by the creditor.