Bail Bond Collateral
What is Bail Bond Collateral?
Bail Bond collateral is some sort of tangible property (cars, house, jewelry, artwork, cash) that you use to secure a bail bond. Collateral takes the place of money. When you need to bail someone out of jail, you may not have the cash available to post the bond yourself. A bail bondsman, however, is willing to accept property in lieu of cash and charges you a 10% fee for doing the bond. The fee is non-refundable, however, the collateral is fully returned to you as long as the defendant goes to every one of his hearings until the case has been adjudicated (completed).
For example: Your brother George has been given a $2,500 bond. You don’t have $2,500 in cash to give the court, but you do have a 2005 Dodge 4×4 that is worth at least that, however, you don’t want to sell your truck. A Phoenix bail bonds company would place a lien on your title and charge you a $250 fee. When the case is over you get your title back. You haven’t had to sell your truck, and you are only out of pocket $250. You have maximized your leverage.
What can be used as collateral?
Any asset that the bondsman is willing to accept may be used as collateral. Typically, cars truck, buses, motor homes, mobile homes, horse trailers, jewelry, artwork by well known artists, electronics, tools, real estate, land, houses, gold, silver, antiques, etc. Be aware, most bondsmen are going to value your assets conservatively; this means wholesale valuation methods will be applied to your assets. Remember, the idea of collateral is to cover the loss of the bond. Collateral would be sold quickly to cover loss. Used car lots, pawn shops, and junk dealers are favorite receivers of much of the property. Do not get your feeling hurt if the the bondsman does not value your property as high as you do. This is business, not charity.
Can I lose my collateral?
When a default in the bond has occurred and the Court has ordered the bond Forfeited, a judgement is isuued and the bail bond company is required to remit to the Court the entire forfeited amount. The bail bond company will require you to do one of the following: pay the forfeited amount in cash; if the debt is paid in full, the bail bond company should return your collateral immediately. If you can’t pay the full forfeited amount, the bail bond company will be forced to sell your property. If the bondsman sells your collateral and has not received the required amount to cover his loss, you will be personally liable for the deficit. Any cash received in excess of the amount necessary to cover his loss will be returned to you.
For more information on collateral or the bail bond process, please call us at (602) 258-4488
© Copyright 2012, Maricopa County Bail Bonds. All rights reserved.
All materials, content and forms contained on this website are the intellectual property of Maricopa County Bail Bonds and may not be copied, reproduced, distributed or displayed without Maricopa County Bail Bonds’ express written permission.