If the collateral is in the possession of the debtor and cannot be obtained without disturbing the peace, then the creditor must take court action to repossess the collateral.

Question

Quizplus · Accepted Answer

This is correct as creditors cannot take possession of collateral without following the legal process which includes obtaining a court order. If the collateral is in the possession of the debtor and cannot be obtained peacefully, then court action is the only option left for the creditor to repossess the collateral.

If the Collateral Is in the Possession of the Debtor