The negative impact of owing a significant amount of debt can affect multiple areas of your life. In addition to a growing balance of debt you cannot manage on your own, you may also have to deal with phone calls, letters and other forms of contact from creditors. In certain situations, a creditor may move to retake possessions bought on credit.
Repossession is a process that allows a creditor to retake property for which a consumer owes money and is late on payments. This means that if you do not make your car payment, the bank or another type of creditor can initiate the repossession process. However, you still have rights, and there are limits to what a creditor or repossession company can do and how they treat you.