What is Bail Collateral
If you don't have the cash on hand to bail someone out, your next best option may be putting up collateral. Learn what bail collateral is here.
Top 10 Types of Bail Bonds Collateral
[Top 10 Types of Bail Bonds Collateral]
When someone is arrested and charged with a crime, he or she must put down bail bonds collateral to ensure that he or she will appear in court. Not doing so can incur large fees or result in another arrest with larger penalties. The accused also can be released on his or her own recognizance, especially if the crime is small, the suspect young, or the charged not being considered a threat to society.
Below are ten forms of bail bonds collateral:
Surety Bond: A friend or relative pays 10 percent of the bond, and an insurance agency backs the bond for the bondsman. If the accused skips out of jail, the friend or relative on the hook must pay the penalty either in cash, property, or valuables.
Property Bond: In this case, a land lien is given to the court. If the accused doesn’t appear in court, the property may be foreclosed.
Home: This process takes several weeks, because it involves the buying and selling of a home. A minimum of 150 percent equity is commonly required.
Land: Real estate is the most common form of bail bonds collateral, in addition to cash.
Bank Account Balance: Committing some of all of the funds in your bank account is another way to secure bonding.
Cash: Payment is in full amount and, in some cases, a check or credit card is accepted. While these are the easiest bail bond collateral used, the cash is tied up, which can make it difficult to secure legal service.
Car: Just like a home or land, you can secure bail by putting up your vehicle. Along the same lines, you can lose this item if you fail to appear in court or can’t make the premium amount (a percentage the bondsman charges).
Jewelry: Depending on the gold market and whether you have diamonds, this can be a viable option for securing collateral.
Firearms: If you own firearms that are in good condition, you may be able to use them as collateral.
Pawnable Items: Instruments, game systems, televisions, and more may be pawnable, raising enough funds for your collateral.
Numbers 3 and 4 above fall under the category of property bonds. Numbers 8 and 9 can be used depending on their value. To locate a bail bond agent, check online, contact a friend of family member, or have someone check out locations near the jailhouse. Some bondsmen specialize in particular populations such as tourists or college students.
What is Bail Collateral?
Bail collateral is offered in place of or in addition to bail money in order to secure the release of the person who has been arrested. Consider it a form of credit or a loan to ensure that the person shows up in court. Collateral can come in many forms; it can be your house, jewelry or other assets of a certain given value.
If you are offering your house, car or other large property item as collateral, the court or bail agent will typically have you place the deed or pink slip in their trust. If it is a smaller item such as jewelry, they will take physical possession and keep it in a secure location until the case is resolved.
Most of the time bail collateral takes the form of property. If the court is collecting on a property-based bail collateral because of a failure to appear in court, it typically involves the seizure and sale of the individual’s home. Property bail takes weeks to collect on, and equity in the estate being sold must be determined to equal at least 150% of what is owed the court.
[What is bail collateral] Collateral will be returned when the case is completed, whether the the person is found innocent, the charges are dropped, the person is sentenced or bail is exonerated. If the individual for whom the bail collateral was offered fails to appear in court at the agreed upon time and date, the collateral will be seized or collected by the court or the bail bond company.
The full amount of the collateral may not be returned to the individual if a premium has been put in place when using a bail bond agent. This premium is negotiated between the bail agent and the arrested party or person bailing the arrested person out. Bail collateral will typically be returned within five business days after the individual has paid off all financial obligations and their case has been concluded. Until this happens a bail bond agent can hold the bail collateral.
To locate a local bail agent near you who can discuss collateral with you, visit AboutBail.com’s trusted network of local bail professionals. Keep in mind that Illinois, Massachusetts, Maine, Nebraska, Oregon, and Washington, D.C., are all no-bail areas, so you will have to deal directly with the courts.Type your paragraph here.