Estimating the loss-given-default has become important in consumer credit, especially as a result of the Basel II. Although a lot of reasearch has been conducted on the probability of default with respect to personal loans and consumer credit, less is known about the recovery rates of this type of debt. Generally speaking, not enough attention has been paid to providing a comprehensive study of the different definitions of recovery. The same is true for the study of comparative related theories. For this reason, this thesis will endeavor to give a concise yet sufficient characterization of debt in general, subdividing it into corporate and personal debt, as well as further distinction of the latter with respect so banking and retail business. In this connection, one of the main goals of the thesis is to contribute to overcoming these shortcomings with an emphasis on the personal loan.