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 North Carolina, 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 installment payments for personal property like vehicles, boats, or rent-to-own items, the creditor may have the right to repossess the collateral. The agreement that grants this right is typically found in the security agreement signed by the debtor at the time of the transaction. North Carolina law allows for self-help repossession, meaning the creditor can repossess the property without a court order, provided the process is carried out without breaching the peace. If the creditor cannot repossess the property peacefully, they may seek a replevin order from the court to recover the collateral. After repossession, the creditor must provide the debtor with a notice of their rights, including the right to redeem the property and the potential sale of the property to satisfy the debt. Debtors in North Carolina have specific rights and protections under state law, and creditors must adhere to these regulations to avoid liability.