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 Massachusetts, 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, often without judicial process, provided the repossession is peaceful. This means the creditor cannot use force or cause a breach of the peace during the repossession. The credit agreement signed by the debtor typically outlines the rights of the creditor to repossess the property. After repossession, the creditor may sell the property to satisfy the debt, but must do so in a commercially reasonable manner. If the sale does not cover the full amount of the debt, the debtor may still be responsible for the deficiency. Debtors have certain rights, including the right to receive notice of the default and the right to redeem the collateral by paying the full amount owed before it is sold. It is important for both creditors and debtors to understand their rights and obligations under Massachusetts law regarding repossession.