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 Pennsylvania, 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 an auto loan or a rent-to-own agreement, the creditor has the right to repossess the collateral property. The credit agreement signed by the debtor typically outlines the terms under which repossession can occur. In PA, creditors may repossess property without initiating judicial proceedings if they can do so without breaching the peace. However, if the repossession cannot be accomplished peacefully, the creditor must seek a court order. 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 have the right to recover any surplus from such a sale and are responsible for any deficiency if the sale proceeds do not cover the outstanding debt.