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 New Jersey, the process of repossession 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 for repossession rights is typically outlined in the credit financing agreement signed by the debtor. New Jersey law requires that the repossession be conducted without breaching the peace, which means it must be done without using physical force or causing a disturbance. If the creditor fails to comply with this requirement, the debtor may have legal recourse. After repossession, the creditor may sell the property to satisfy the debt, but must notify the debtor of the sale and conduct it in a commercially reasonable manner. The debtor may have the opportunity to redeem the property before the sale by paying the full amount owed, including any additional costs associated with the repossession.