Why You Usually Need Collateral When Using A Bail Bond Service
If your loved one is in jail and you don't have enough money to bail them out, the best option might be to turn to a bail bond agent. But to secure a bond with a bail bond agent, you must provide the agent with collateral to secure the bond.
How a Bail Bond Works
A bail bond is a loan that must be paid back after the trial. If your loved one participates in all court hearings, the bail bond service will have the bond amount returned to them. However, if your family member does not show up in court, the bail bond service will need to be compensated for the cost of the bail.
As a result, a bail bond service will typically require that you provide collateral that can be used to pay for the cost of the bail amount if your loved one does not show up in court. However, you might wonder what can be used as collateral.
Forms of Collateral That are Accepted
For a possession to be used as collateral, it must be valuable. The total value of the item must be almost equal to the value of the cash bond. Common possessions used as collateral include the deed to a house, the title to a car, valuable jewelry, valuable artwork, expensive equipment, boats, ATVs, and anything else of value. The item you use for collateral must also be something that will not depreciate quickly.
Even if you have very valuable property, such as an investment, it must be very liquid. Otherwise, it will be more difficult for the bail bond service to sell the property to pay the bond cost.
You must also prove that the property is real and that you can transfer it. You must verify that you legally own it and can transfer the property's ownership to someone else. You cannot use collateral that has already been pledged. For example, you can only use a home as collateral if you are the one with the mortgage. You also can only use a car that you have paid off.
The Next Steps After Bailing Out Your Loved One
Once you have bailed your loved one out of jail, the next step is to ensure they attend all their court dates. If the bail bond service recovers its money, you will not have to worry about losing any assets that you put up as collateral.
Reach out to a company like A Professional Bail Bonds to learn more.