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 Colorado, 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, equipment, or other personal property, without initiating judicial proceedings, provided the repossession is conducted without a breach of peace. The credit agreement signed by the debtor typically outlines the rights of the creditor to repossess the property upon default. Colorado law requires that the creditor must provide the debtor with a notice of the right to cure the default before proceeding with repossession. After repossession, the creditor may sell the property to satisfy the debt, but must do so in a commercially reasonable manner. If the sale proceeds exceed the debt owed, the surplus must be returned to the debtor. Conversely, if there is a deficiency, the creditor may seek a deficiency judgment against the debtor for the remaining amount owed.