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 York, 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, which is the property secured by the loan. The credit agreement signed by the debtor typically outlines the terms under which repossession can occur. In New York, creditors are generally allowed to repossess property without a court order if they can do so without breaching the peace. However, if the repossession would likely lead to a breach of the peace, the creditor must obtain a court order before proceeding. After repossession, the creditor may sell the property to satisfy the debt, but must do so in a commercially reasonable manner. Debtors have certain rights during this process, including the right to redeem the property by paying off the debt before it is sold and the right to receive notice of the sale. It is important for both creditors and debtors to understand their rights and obligations under New York law regarding repossession.