Unpaid debts are one of the biggest challenges for Ghanaian businesses. A client who won't pay, a contractor who absconded with money, a borrower who disappeared — these are common situations. Here is the legal toolkit for recovering what you are owed.
Step 1: Demand Letter
Before any court action, send a formal Letter of Demand — a written demand for payment within a specified period (usually 7–14 days). This letter should:
- State the exact amount owed
- Reference the contract, invoice, or agreement
- Demand payment by a specific date
- State that court action will follow if payment is not made
- Be sent by a lawyer on legal letterhead (far more effective than an informal note)
Many debtors pay on receipt of a lawyer's letter to avoid the cost and embarrassment of court proceedings.
Step 2: Mediation
Before filing a court case, consider mediation through:
- The Ghana Mediation Centre
- The Alternative Dispute Resolution Centre of the Ghana Bar Association
- Industry bodies (e.g., Association of Ghana Industries for commercial disputes)
Mediation is faster and cheaper than court, and a mediated settlement is enforceable. Many commercial contracts now contain mandatory mediation clauses before litigation.
Step 3: Court Action
Which Court?
- District Court: Claims up to GHS 10,000
- Circuit Court: Claims up to GHS 50,000
- High Court: Claims above GHS 50,000 or complex matters
- Fast Track High Court: Commercial cases designed for faster resolution
The Process
- Lawyer files a Writ of Summons with Statement of Claim
- Defendant is served — has 8 days to enter appearance
- If no defence: you can apply for summary judgment (fast-tracked)
- If defended: full trial process
- Court grants judgment for the debt + interest + costs
Summary Judgment
For clear-cut debt cases (e.g., unpaid invoice, dishonoured cheque) where the defendant has no genuine defence, apply for summary judgment under Order 14 of the High Court Rules. This avoids a full trial and can get you a judgment in weeks rather than years.
Step 4: Enforcing a Judgment
Winning a court judgment is not the same as getting paid. If the debtor still doesn't pay, you can enforce the judgment through:
- Garnishee order: Freeze the debtor's bank account and redirect funds to you. Most effective enforcement tool — fast and powerful.
- Seizure of assets: Court bailiffs can seize and sell the debtor's movable assets (vehicles, equipment, etc.)
- Charging order: Place a charge on the debtor's land or property — it must be paid when the property is sold
- Committal: In extreme cases, contempt of court proceedings for deliberate non-payment
Dishonoured Cheques: Criminal Route
If someone pays you with a cheque that bounces, this is a criminal offence under Ghana's criminal code. You can report the dishonoured cheque to the police in addition to the civil debt recovery process. The threat of criminal prosecution is often a powerful motivator for payment.
Costs
- Demand letter from lawyer: GHS 300–800
- Court filing fees: GHS 200–2,000 depending on court and claim amount
- Lawyer fees for full litigation: GHS 3,000–20,000+
For small debts, lawyer fees may exceed the debt — assess whether litigation is commercially worthwhile.
Protect your business from non-payment with proper contracts. Use our free Business Structure Finder. Read about common legal mistakes and enforcing hire purchase agreements.