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 South Carolina, 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 intervention, provided the repossession is conducted without breaching the peace. This means the creditor can take back the property, such as a vehicle, boat, or rented equipment, as long as they do not use physical force or threats, and do not enter a locked or private area without permission. The creditor must also provide the debtor with a notice of their right to cure the default, typically by paying the overdue amount, before proceeding with repossession. If the debtor fails to cure the default, the creditor may sell the repossessed property, usually after giving notice to the debtor. The proceeds from the sale are applied to the debt, and any surplus must be returned to the debtor. If the proceeds are insufficient to cover the debt, the creditor may seek a deficiency judgment for the remaining amount owed.