The debtor loses possession of the property, which can only be regained through redemption procedures. The creditor may or may not resell the property, but if there is a resale, the creditor can go after the debtor for any deficiency in the remaining debt. 810 ILCS 5/9-615(d). Also, the creditor can charge the debtor the cost of repossession, which may include costs to prepare the property for resale, towing charges, storage charges, and the like. 810 ILCS 5/9-615(a).
Requires valid security interest
A repossession is lawful only when the creditor has a valid security interest in the consumer's vehicle. This requires that the security interest is written in a retail installment contract or a financing agreement and the case of vehicles, noted on the certificate of title or approved form provided by the Secretary of State. “There must be some language reflecting the debtor’s intent to grant a security interest.” In re Sabol, 337 B.R. 195, 198 (Bk. Ct. C.D. Ill. 2006). If there is no valid security interest, a creditor cannot repossess the property.
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