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 Illinois, 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 debt, such as by failing to make timely installment payments, a creditor may have the right to repossess the collateral, which could be personal property like vehicles, boats, or rent-to-own items. The agreement that grants the creditor the right to repossess is typically found in the security agreement signed by the debtor at the time of the transaction. Illinois law requires that repossessions are conducted without breaching the peace, which means the process must not involve violence or breaking into a locked area without permission. If a creditor wrongfully repossesses property or breaches the peace during repossession, the debtor may have legal recourse against the creditor. It is advisable for debtors facing repossession to consult with an attorney to understand their rights and for creditors to ensure they comply with the applicable laws to avoid potential legal issues.