Bail Bond Collateral

Sometimes a person may find themselves in a difficult legal situation where they have been thrown into jail for whatever reason. When this type of situation occurs, there is usually the fastest way to get out of jail if you pay bail. The court will decide how much bail is required for your release. Often, the accused will go to a bail bond company to secure the money necessary for the bail. This person will usually pay a percentage of the bail amount to the bail bond company for this type of loan.

 

If the accused decides to skip out on his court case, then the bail bond company will be liable for the entire amount of the bail. It is, therefore, obvious that most of the bail bond companies will be careful on who they provide bail for. In fact, most bail bond companies will want to make sure that you have the assets available so as to cover the cost of your bail. There are times however when an accused person does not have the money and therefore provides some collateral to the bail bond company.

The insurance for this kind of arrangement needs to be something of value that will ensure payment. Different types of insurance that an accused person may offer are real estate, stocks, automobiles, and so forth. The majority of bail bonds are written up as signature bonds. A signature bond means that the accused person is using his/her real credit history or stability in their local community. If they have such a security then often the bail bonds company will not require collateral.

To receive a signature bond, the accused will be necessary to answer various questions on a bail application. The bail bond company will look at things such as employment, credit rating, criminal history, and other relevant factors.