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 Alabama, 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 property. The credit agreement signed by the debtor typically includes a security interest, granting the creditor this right. Alabama 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 property. After repossession, the creditor must provide the debtor with a notice of their right to redeem the property and may be required to sell the property in a commercially reasonable manner. Debtors in Alabama have specific rights and may be entitled to a deficiency judgment if the sale of the repossessed property does not cover the outstanding debt.