What Is Bail Collateral?
Bail collateral is offered in place of in or in addition to money in order to secure a bail bond to release the person who’s been arrested. Using collateral to get a bail bond is one way to bail someone out of jail if you have limited or no money. Bail bond companies that take collateral simply want to ensure that they don’t incur any financial losses, and that the defendant shows up in court on their assigned date. There are many forms of bail bond collateral, such as property, vehicle, cash, or even jewelry.
How Does Bail Bond Collateral Work?
Your bail bondsman or the court will collect your collateral as a type of insurance that the defendant will return to court. Whatever is put up for collateral will be returned upon the completion of the case, whether the person is found innocent, the charges are dropped, the person is sentenced, or bail is exonerated.
If the individual fails to show up for the court date, the collateral will be seized or collected by whomever it was given to. Keep in mind that the person bailing the defendant out of jail may have negotiated a premium when giving collateral to the bail bond agent, in which case the full amount may not be returned. Collateral is eligible to be returned once all financial obligations have been paid off, and the case is concluded—until this happens, a bail bond agent can hold the bail collateral.
9 Types of Bail Bond Collateral Used in Dallas, Texas
You have the option to put your house up as collateral for bail, providing that it has enough equity to cover the penal amount of all your outstanding liabilities and there are no liens on it. In order to assess the true value of your property, take a close look at the most recent bill from the institution that gave you the loan to purchase it. Then, deduct the amount of money that’s been put towards the principal from the overall cost of the property.
All bail bonds require collateral in one form or another, and you’ll find the vehicles are one of the most common forms. Similar to putting your property up as collateral, you’ll need to determine the true value of your car before putting it up. When researching the value of your vehicle, you always want to find out the trade-in value since it’s very possible you may have to sell it in order to recover from a loss. Once you’ve determined that your vehicle is valuable enough to be used as collateral, you’ll need to transfer legal ownership to the bail bond agent. Keep in mind that you may not have to go straight to the D.M.V. for this transaction—some private companies offer services to take of exchanges of this nature and can get it done it a much speedier fashion.
Cash collateral is less common but is sometimes a good option for those with lower bail amounts. Many bail bond agents are unable to obtain cash collateral, but almost all of them accept them. One advantage to this type of collateral is the ease of the transaction—there’s no ownership to be transferred, simply the exchange of cash.
When putting your credit card up as collateral, all you need to do is make sure that your credit limit exceeds or is enough to accommodate the penal amount that’ll be charged should the defendant fail to appear in court. Bail bond companies usually won’t charge anything to your card as soon as you give them your information, but will charge you the full amount if the bail client does not make their court date.
Some bail bond agents may be uncomfortable taking such forms of collateral, especially if they’re not apt to appraise the quality of your jewelry. However, if you can have your jewelry appraised by a professional, then it can be a great form of collateral.
This option may surprise some—how can a bail bond company track down a wayward client using just a note? While a promissory note won’t help physically get the defendant back in court, it’ll help the bail bond agency collect the penal amount. When a client is charged the full amount, which can sometimes be pricey, they’re more likely to return and cooperate with the courts. Even if someone posted this collateral for them, the bail bond company can depend on their help to track down the defendant once they realize their assets are actually in danger.
Expensive electronics are one thing that many people have access to since they’ve become so incredibly common in the past few years. A newer generation iPhone is valued at almost $1,000, so it may not be as hard to make up your bail collateral with electronics as you many think; by combining electronics and minimal cash, you’ll likely be able to cover the full amount of your bail.
Guaranteed Stocks or Investments
Using guaranteed stocks and investments as collateral for a bail bond is yet another way you can make bail. Most bail bond companies will accept the value of any guaranteed investments you have as long as the value covers the full penal amount that’ll be charged if the defendant doesn’t make it back to court. You’ll simply need to sign over legal ownership of the stocks or investments and put them in the name of the bail bond agent.
Get a Bail Bondsman in Dallas, Texas
If you’re looking for a bail bondsman in Dallas, Texas, look no further than PCS Bail Bonds. We have bail bong agents available on call 24 hours a day, seven days a week for your convenience. They’re able to give you advice tailored to your specific situation and can guide you through the process. While local courts can take hours to process paperwork, our agents can be down to the jail in as little as 30 minutes. Take advantage of our fast and affordable bail bond services, and contact us today to begin the process of getting your loves one out of jail.
Latest posts by Paul Schuder (see all)
- Will a Bail Bond Affect Your Credit Score? - April 26, 2017
- 9 Types of Collateral for Bail Bonds - March 15, 2017
- How to Find Out Someone’s Bail Amount in Dallas, Texas - March 8, 2017