Debt Recovery in Ghana: Legal Options When Someone Owes You Money

Bad debts are a major problem for Ghanaian businesses — from unpaid invoices to bounced cheques to loans that aren't repaid. Many business owners write off debts they could have recovered because they don't know the legal process. Here's what you can do.

Step 1: Formal Demand Letter

Before going to court, send a formal written demand letter:

• Specify the amount owed and how it arises
• Attach invoices or documentation
• Set a clear payment deadline (7–14 days)
• State that court proceedings will follow if not paid

A lawyer's letter is more effective — debtors take it more seriously. Cost: GHS 300–800. Many debts are recovered at this stage.

Step 2: Choose the Right Court

Small Claims Court (District Court)

• Claims up to GHS 10,000
• Simplified procedure — no need for a lawyer (though you can have one)
• File at the District Court in the relevant district
• Faster than High Court — typically 2–6 months to judgment
• Filing fee: approximately GHS 100–300

High Court (Commercial Division)

• Any amount — best for larger debts (GHS 50,000+)
• Faster than general High Court for commercial matters
• Specialist judges who understand business disputes
• Filing fee: GHS 500–5,000 depending on claim size

Fast Track Court

• High Court equivalent — specialises in speed
• For claims that need quick resolution

Step 3: Obtaining Judgment

If the debt is clear and documented, you can apply for summary judgment without a full trial — the debtor must show why judgment should not be entered immediately. If they have no credible defence, judgment is granted quickly (weeks, not months).

Step 4: Enforcing Judgment

Getting judgment is only half the battle. Enforcement is where many creditors give up. Options:

Garnishee Order (Third-Party Debt Order)

This is the most powerful tool. You apply to court to freeze and take money from the debtor's bank account. The bank must hold the money pending the court order. If the debtor has money in the bank, this works immediately.

Attachment and Sale of Goods

Court bailiffs (sheriffs) attend the debtor's premises and physically take goods (equipment, vehicles, stock) which are sold to satisfy the debt.

Charging Order on Property

If the debtor owns land, you can obtain a charging order — this creates a legal charge on their property, which must be paid before they can sell or mortgage it.

Judgment Debtor Examination

Bring the debtor to court to be questioned about their assets under oath. Lying is contempt of court. This reveals what assets exist for enforcement.

Bounced Cheques: Criminal Route

A cheque that bounces (is dishonoured) is both a civil debt and potentially a criminal offence. Report to the police — writing a bad cheque with intent to defraud is a criminal offence under the Criminal Code. The threat of criminal prosecution often produces payment.

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