Any business that lends credit to buyers or renters, unfortunately, must be adept at debt collection. When the debt is secured with a physical item or asset, the debt collection process can include repossession. Repossession is the act of reclaiming property in an attempt to recover losses of outstanding debt.
When people think about repossession, vehicles automatically come to mind for many. However, any physical item that can be repossessed by the creditor can be subject to repossession.
Besides vehicles, what else can be repossessed?
There are limitless possibilities of repossession when the debt is secured by a tangible item. Here are some common items that are repossessed:
- Real estate: Defaulting on a home or property loan can result in the property being repossessed.
- Jewelry: Many buy jewelry on credit and when payments are not made, the jewelry could be repossessed.
- Furniture and electronics: Many rent-to-own places lend furniture and electronics on credit. These too can be subject to repossession if the loan is defaulted on.
- Artwork: High ticket items, such as artwork, are often purchased on credit. When expensive items like artwork are not paid for following the contract, repossession can result.
- Any other tangible asset: Virtually any physical item or tangible asset can be repossessed if creditors do not uphold their end of the agreement.
Repossession is often costly and time-consuming, but it can be a viable option to regain a portion of losses by businesses and credit agencies.
When undergoing the legal process of repossession, it can be helpful to have professionals working on your behalf that are quick and aggressive in collecting your debts.