What is repossession?
A)a right granted to the debtor to take possession of the collateral after repayment of the debt
B)a right granted to the debtor to take possession of the collateral before repayment of the debt
C)a right granted to a secured creditor to take possession of the collateral upon default by the debtor
D)the act of possession of the collateral by the court owing to default by both debtor and creditor

Question

Quizplus · Accepted Answer

Repossession is a right granted to a secured creditor to take possession of the collateral upon default by the debtor. This means that if the debtor fails to make payments on a loan that is secured by collateral (such as a car or house), the creditor has the right to take possession of that collateral in order to recover their losses. This process is known as repossession.

What Is Repossession