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 Rhode Island, 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, typically without judicial intervention, as long as the repossession is conducted without breaching the peace. The credit agreement signed by the debtor usually includes a security interest, granting the creditor a legal right to the property upon default. Creditors must follow specific procedures outlined in the Rhode Island General Laws, and they may be required to provide notice to the debtor before and after repossession. If the property is repossessed, the creditor may sell it to satisfy the debt, but must do so in a commercially reasonable manner. Debtors have rights as well, including the right to redeem the property by paying the full amount due before it is sold, and the right to receive any surplus if the sale proceeds exceed the debt owed.