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 Arizona, repossession of property is governed by the state's version of the Uniform Commercial Code (UCC), particularly Article 9, which deals with secured transactions. When a debtor defaults on a secured loan, such as failing to make timely payments for a car or other personal property, the creditor has the right to repossess the collateral without judicial process, as long as this can be done without breaching the peace. The credit agreement signed at the time of purchase typically includes a security interest, granting the creditor the right to repossess the property upon default. 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. If the sale proceeds exceed the debt, the surplus may be owed to the debtor, while a deficiency may result in the debtor owing more money to the creditor. Arizona law requires creditors to adhere to specific notice requirements and procedures during repossession and disposition of the collateral to protect both the creditor's rights and the debtor's interests.