When you’re a business owner, you’re going to encounter customers who fail to meet their obligations. Recovering property that’s being improperly held can be a big concern.
Two common remedies for reclaiming property are repossession and replevin. While these terms are sometimes used interchangeably, they are actually two different legal processes.
What is repossession?
Repossession is a self-help remedy that allows a lender or seller to reclaim their property without court involvement. It applies primarily to items that are secured by a loan or a lease agreement – such as a car, construction equipment or furniture that’s been purchased on a payment plan. Because repossession bypasses the court system, it can be faster and less expensive than other options.
What is replevin?
Replevin, by comparison, is a court-supervised legal process that can be used to regain property that is being wrongfully held by another party. The party seeking to regain their property must file a lawsuit and obtain a court order.
Because it involves the court, replevin offers more official oversight – which can also provide more legal protection for both parties. This process is typically used when the property is not covered by a security agreement or the right to repossess is unclear. For example, if a business loans an expensive sculpture to a gallery for a temporary exhibit and the gallery refuses to return it after the exhibit ends, the business may need to file a replevin action to get their artwork back.
Regardless of your situation, it can be difficult to understand the options for your business until you’ve obtained the appropriate legal guidance.
