If the debtor defaults on his agreement with the creditor,the creditor repossesses the collateral,and the creditor then sells the collateral.However,the creditor may also retain any surplus if the amount realized on the sale exceeds the amount of the debtor's debt.

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If the debtor defaults,the secured creditor may either forget the collateral,and sue the debtor on his note or promise to pay;repossess the collateral,and use strict foreclosure-in some cases-to keep the collateral in satisfaction of the remaining debt;or repossess and sell the collateral,and then,depending on the circumstances,either sue for any deficiency or return the surplus to the debtor.

If the Debtor Defaults on His Agreement with the Creditor,the