Debt recovery has always been challenging for individual lenders, financial institutions and other business alike. Notwithstanding the challenges in recovery of debt, business cannot do away with credit finance and other financial arrangements.

Therefore it is imperative on lenders to put effective and efficient mechanism to minimize default and also maximize the recovery of debt when they become due.   

There are three main methods of recovery of debt in Ghana;

  • Instituting court proceedings to recover the debt.
  • If the credit agreement has been registered with the Collateral Registry, realize the security interest without initiating court proceedings; or
  • Appoint a receiver or manager.


This is the process of instituting legal action in our traditional courts to recover the debt and for any other reliefs that the lender may be entitled.  

The process involves issuing of a Writ and Statement of Claim against the borrower. The borrower has the option either to defend the claim or admit to the claim.

If the lender is successful in prosecuting its claim, the court will give judgement for the recovery of the debt and any other reliefs the lender may be entitled.  The next step will be on the lender to explore all the execution tools available to the court to recover the debt.  


Under the relevant laws, upon default of a credit agreement, the lender can realise or dispose of the security interest without any court order. This right is available to a lender who has registered its security interest with the Collateral Registry of Ghana. 

In the event of default, the lender must issue written notice to the borrower notifying it of the default. The borrower will be given a period of 30 days from the date of the notice to remedy the default. 

Upon expiration of the notice period, the lender must notify the Collateral Registry of its intention to realise the security interest without a court order. The registrar will issue a certificate known as a memorandum of no objection to the lender. The lender can then take possession of the collateral asset and dispose of it without a court order. 

In the circumstances where the lender is unable to enforce its rights peaceably, it may apply to the court for a warrant for police protection.


A lender in whose favour a security interest has been created may, upon the default of the borrower, appoint a receiver or manager in accordance with the provisions of the credit agreement. Alternatively, if there are no such provisions, the lender can apply to court for the appointment of a receiver or manager to take possession or collect rent and profits derived from the property, or to realise the security interest on behalf of the lender.


It takes between twelve (12) months to thirty (36) months to start and complete the debt recovery processes indicated above. The duration may be shorter if the borrower does not context the claim.

Notwithstanding the above, it is always advisable to seek a professional legal advice on which available suitable step to recover t debt.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.