Also known as: repo · repossess · repossessed · repossessing · repossessions
Written by attorneys · grounded in primary & secondary sources — see below
An act of retaking property, especially a secured party's recovery of collateral upon a debtor's default under a security agreement.
Redline Automotive repossesses a vehicle from Rajesh Rao after missed payments. The dealer then sells the returned collateral to a third party and applies the proceeds to the outstanding balance. Rajesh challenges the transaction, but the security interest remains valid because the agreement permitted disposal of repossessed goods.
A secured lender repossesses a student's financed laptop after default on payments. The student claims the seizure occurred without notice or hearing. The court examines whether the repossession of the collateral required procedural safeguards before the lender could retain it.
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Walker-Thomas Furniture repossesses multiple household items from a buyer after a single missed installment. The buyer argues the contract terms made default too easy to trigger repossession across all goods. The court reviews whether the repossession clause was unconscionable given the payment structure.
A secured gallery repossesses a painting pledged as collateral from a collector who purchased it in good faith. The original owner asserts superior title after discovering the theft years earlier. The court weighs whether the repossession action is barred by the statute of limitations on claims for possession.
A secured landlord repossesses a tenant's financed furnishings during an expedited eviction for nonpayment. The tenant challenges the seizure as lacking any opportunity to contest the removal. The court considers whether the repossession procedure satisfies constitutional requirements for notice.
A city repossesses financed equipment on private land through eminent-domain proceedings tied to a commercial redevelopment project. The owners argue the taking exceeds public-use limits and lacks adequate compensation procedures. The court evaluates whether the repossession of the collateral meets state constitutional standards.
A secured party may repossess collateral without judicial process if the repossession can be accomplished without breach of the peace. The UCC permits self-help repossession when the security agreement authorizes it and no violence or trespass occurs.
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After lessee default the lessor may recover goods that were accepted but not repossessed or tendered back. Damages include accrued rent and the present value of remaining rent less expenses saved.
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A security interest remains valid even when the debtor retains the right to use, commingle, or dispose of returned or repossessed goods. The UCC expressly provides that such rights do not render the interest fraudulent against creditors.
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Due process may require notice and an opportunity to be heard before certain prejudgment repossessions when state action is involved. Courts have applied this analysis to situations such as wage garnishments and seizures of household goods.
…that because disability benefits were terminated there was a foreclosure upon the Eldridge home and the family's furniture was repossessed, forcing Eldridge, his wife, and their children to sleep in one bed. Tr. of Oral Arg. 39, 47-48. Finally, it is also no argument that a worker, who has been placed in the untenable position…