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Covering a Bail Bond with Collateral

Few things are more surprising than receiving a phone call in the middle of the night informing you that a family member has been arrested and needs your assistance in escaping from prison. No one anticipates having to assist others with bail, particularly when it comes to financial matters. A bail bond can be costly and require a large amount of money up front, depending on the cause for the arrest.Do you want to learn more? Visit Connecticut Bail Bonds Group serving Tolland County

When negotiating with a bail bondsman, you will be paid a fee in return for agreeing to pay the whole bond sum. This number is calculated as a percentage of the bond’s overall value. This percentage is fixed by law in the majority of states. In California, for example, bail bondsmen must charge a premium of 10% of the total bond amount.

Bondsmen are not permitted to charge more than this, nor are they permitted to give clients a “discount.”
So, what do you do if you need a bond but don’t have the funds to pay the premium? Using collateral is one choice.
This is effectively granting a bondsman possession of a tangible asset in return for promise that the individual receiving the bond will appear in court and meet all of their legal obligations.
To offset the expense of a bail bond premium, certain providers of specialist bail bond services will consider collateral in place of monetary payment. Furthermore, if you are negotiating directly with the court system to arrange for bail, a judge might allow the court to accept collateral instead of money to cover bail.

If you’re dealing with a bondsman and want to use collateral instead of cash, the bondsman will decide what kind of collateral is appropriate. Bondsmen, on average, tend to earn anything worth at least 150 percent of the bond’s overall value. The explanation for this is that if an individual fails to appear for bail, the bondsman must be able to sell the collateral object to cover his missing bond as well as his time and effort in selling it.

What types of objects can be used as a kind of collateral? Again, the bond agent has final say, but almost anything with merit can be used. The following are the most popular collateral items:

Real estate (such as a house)
Recreational Vehicles in Automobiles

The bondsman would ask you to put the pink slip or deed in their confidence in these circumstances. This does not grant them ownership of the object, but it does allow them to take possession of it if the bond agreement is breached. Smaller objects, such as jewellery, paintings, or collectibles, may also be used as collateral; in these cases, the bondsman can request that the object be physically held before the related court case is resolved.