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 Vermont, 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, as specified in the credit agreement. The agreement typically outlines the process and conditions under which repossession can occur. Vermont law requires that the repossession process be carried out without breaching the peace, which means it must be done without using physical force or threats of force. If a creditor cannot repossess the property peacefully, they may need to obtain a court order. After repossession, the creditor may sell the property to satisfy the debt, but they must notify the debtor of the sale and provide a detailed accounting. The debtor may have the opportunity to redeem the property before the sale by paying the full amount owed, including any additional fees and costs. It's important for both creditors and debtors to understand their rights and obligations under Vermont's UCC to ensure compliance with the law during the repossession process.