Here is What You Want to Know About Collateral Bail Bonds

Posted on April 20, 2022 by admin

When it comes to getting out of jail in Indianapolis, bail bond service is the best option for budget-minded folks. The alternative to bail bond service would be cash bonds, which required an individual to pay the full bail amount in cash directly to the jail. Now, there are pros and cons to using either option, but bail bond services are more popular simply because they are more reasonable. Most people cannot afford to give up large sums of cash at once, and bail bond services provide an alternative to doing that.

When it comes to paying for a bail bond, companies will accept different forms of payment depending on their personal preference and the state laws. One such bail bond payment option is collateral. A person, whether a co-signer for the bond or the actual defendant, can secure their bail bond agreement with an asset of equivalent value. This is known as collateral.

Continue reading to learn what you need to know about collateral bail bonds, including what makes good collateral and what does not, plus who to trust in Central Indiana for a fast and secure release from jail.

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Collateral for Bail Bonds

Using collateral for a bail bond means that you are fronting something of considerable financial value, like a home or car, that is equivalent to the bail bond amount. The bail bond agency will hold the asset as collateral to secure their own financial protection. The agency has a legal duty to ensure the full care and protection of collateral while in their possession.

When the defendant appears for their court date, as required in the bail bond contract, the collateral is returned. If the defendant fails to appear, they are deemed a fugitive of the law and the collateral they used for a bail bond is forever forfeited.

Basically, the collateral must be of equal value or more to the bail amount, and it is used to ensure that the defendant cooperates with all bail bond contractual obligations and court requirements. If the defendant flees, the bail bond agency is responsible for paying back the remaining bail amount. To do this, they liquidate the collateral the defendant legally fronted in the bail bond agreement.

Good Collateral Versus Bad Collateral

Bail bond companies differ in terms of which types of collateral they accept. Not only are they regulated by the state on such matters, but they also get to use a degree of their own personal discretion to decide what to accept or not accept as collateral. Additionally, there are good types of collateral and bad types of collateral to use for bail bonds.

For instance, it is not wise to use your house as collateral if you are still making mortgage payments on it. Similarly, you don’t want to use a car for collateral if you are leasing it or have not yet paid it off. That goes for anything you have purchased on credit or that a lender still owns the lien or title on.

Examples of good collateral for bail bonds would include things that are opposite of what was just described, like unfettered real estate that does not have any mortgages of liens, or high value assets like cars, boats, and motorcycles that are paid off in full. You can also use bank accounts, fine jewelry, computers, guns, and televisions.

Are you looking for help with bail bonds? Contact Woods Bail Bonds at 317-876-9600 for trusted, secure, and professional bail bond services in Indianapolis, Indiana. We serve all of Central Indiana and its surrounding counties with 24 hour service.

7 Common Types of Collateral Accepted By Bail Bond Companies

Posted on July 29, 2020 by admin

When you need to pay for a bail bond, you will be required to pay cash, unless you prefer to put up collateral in place of the monetary fee. This is a common scenario among those who are cash poor, or cannot give up their cash for reasons of covering their immediate bills and expenses. There are various forms of collateral, but only a select few that bail bondsmen will agree to take.

Continue reading to learn more about using collateral for bail, including the 7 common types accepted by bail bond companies in Indiana.

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The Truth About Bail Bond Collateral

Most bail bond companies prefer to avoid taking collateral for their services. This is one reason why they will only agree to accept specific types of collateral. When a person uses collateral for bail bond services, they are essentially agreeing to forfeit that collateral in the case that the defendant does not appear for their scheduled court hearings. Using collateral to cover a friend or loved one’s bail is a massive risk since you can lose your collateral if they do not show up for their court date, or skip bond. Unless you know the person very well, it is not recommended to do so. Talk to your local Indiana bail bondsman for alternatives to obtaining a release from jail for your friend. Or see our blog, “My Friend Was Just Arrested. What Happens Next?” to learn what you need to know about posting someone else’s bail.

Although the type of collateral accepted by bail bondsmen vary from company to company, and even state to state, the most common (other than cash) include the following 5:

➥ Personal Property – Bail bondsmen will accept certain types of high-value personal commodities as collateral for their services. Examples might include vehicles, boats, water crafts, construction equipment, farming equipment, coin and baseball card collections, and jewelry.

➥ Real Estate – Perhaps the most commonly used and accepted collateral in the bail bonds industry, other than cash that is, is property. Land and real estate are prime types of collateral that can be used to obtain a bail bond.

➥ Non-Retirement Brokerage Accounts – Although the IRS strictly forbids the use of retirement accounts as bail bond collateral, non-retirement brokerage accounts can be used. Personal investment accounts are a prime example, including stocks, bonds, and other investments that can be liquidated.

➥ Irrevocable Letter of Credit – An Irrevocable Letter of Credit (ILOC) is issued by a bank, but not typically to the average person. Such letters basically guarantee the conditions of the bail bond on behalf of the client.

➥ Credit Card – Although rare, some bail bond companies accept credit cards as collateral for their service. A hold is placed on the card until the defendant appears for all court dates and released from bond conditions.

Where to Get Collateral Bail Bond Services in Indianapolis, Indiana

Call Woods Bail Bonds at 317-876-9600 for safe and secure collateral bail bond services in Indianapolis, Indiana. We operate 24 hours a day, 7 days a week, and 365 days a year, which means we are always standing by to take your call. Whether 3am or a national holiday, our Indiana bail bondsmen are out there getting people like you out of jail, safely and securely.

Do I Need Collateral for a Bail Bond?

Posted on May 16, 2019 by admin

It can be quite a confusing time for anyone dealing with the need for a release from jail, whether for themselves or a loved one. Fortunately, our jail systems work closely with local bail bond agencies, giving inmates and others an opportunity to get out of jail and await their scheduled court hearing from home. With bail bond services, there is no need to miss work and be reprimanded or worse, fired, nor miss important familial responsibilities that require your attention. Best of all, bail bonds allow individuals to get their legal defense in order prior to their court dates, which increases their chances of avoiding the maximum penalties for their criminal charges.

But as mentioned, bail bonds, regardless of all their benefits, can also be quite confusing. A common inquiry surrounding the bail bond industry has to do with collateral. Many people are misguided on the terms and conditions of bail bonds, collateral, and financial liabilities.

Continue reading to learn what you need to know about bail bonds, including what collateral is and when you may need it for a release from jail.

Explanation of Collateral

Collateral simply refers to a person’s assets that can be translated into cash, and thus, adequate to secure a debt. A person will provide collateral in exchange for a service (such as a bail bond), and if they cannot cover the terms and conditions of the contract (a bail bond agreement), they will forfeit their collateral, and the service provider (a bail bond agent) will still be able to collect financial restitution for the value of the collateral. If the payee does meet the terms and conditions of the contract, the provider returns all collateral once the case is closed.

Types of Collateral

The most common types of collateral are real estate and vehicles, as well as, bank accounts, bonds, stock, cash, and more. The type of collateral put up by an individual is at their own discretion, and largely depends on how much debt they need to secure and what they are willing to lose if things go wrong.

Using Collateral for a Bail Bond

Most bail bond companies do not require collateral. Collateral is typically applied for high-profile or egregiously-expensive bonds. Rather than collateral, most individuals need to be employed, have reliable income or cash, and a good reputation within the community to be granted a bail bond. Not sure you can afford a bail bond? See our blog, “Your Options for Covering the Cost of a Bail Bond” to learn what you can do. Talk to a licensed and insured bail bond agent for trusted advice on paying for a bail bond in Indiana.

Need to Get Someone Out of Jail Today?

Call Woods Bail Bonds at 317-876-9600 for safe and secure Indianapolis bail bonds you can trust. We also offer prearranged bail bond services for those needing to surrender to an arrest warrant. In some cases, we can get you turned in and released in as little as one hour. And don’t forget that right now, we are offering 8% bail bonds! Request a free estimate or jail information, anytime.

What is Collateral in the Bail Bond Industry?

Posted on June 22, 2013 by admin

Bail Bonds Indianapolis 317-876-9600

When people are arrested, they are taken into custody where they await their bail hearing. At a bail hearing, the judge will determine what amount to set your bond, taking into consideration your past offenses, and the severity of the current one. Your bail amount will differ from everyone else because of these particular variables.

Once your bail amount is set by the courts, you are given the opportunity to either hire a bail bond agency and obtain a release from jail, or remain in jail and await your next court date, in which you’ll receive your sentencing. When you hire a bail bond agent to obtain a release from jail, many will require some form of collateral in exchange. Read on to learn what collateral means in the world of bail bonds.

Collateral Bail

Collateral is any form of asset, whether it’s cash, property, vehicles, or something else of equal value that is held onto by a person lending a service or product. A bail bond agency will sometimes facilitate their services for the arrested, without asking for any collateral at all. Again, it all depends on the previous criminal history, employment status, credit history, and the type of current offense. A bail bondsman will examine these variables before deciding if they require collateral or not.

The reason a bail agency would ask for collateral is to ensure that the defendant does not skip bail, or fail to appear for their court dates. If they fail to appear, the bond agency is obligated to pay the remaining bond amount unless they can find the person and bring them to the courts. A bond amount can be anywhere from $1000 to $100,000. A bail bond agency only charges 10-15% of the entire bond amount. If a person’s bond amount is $5,000, then a bail agency would charge a $500 non-refundable fee for a bail bond. If the person skips their next court date after being released on bail, the agency has to pay the remaining $4,500 until they find the fugitive.

Indianapolis Bail Bonds

Woods Bail Bonds 317-876-9600

For more information about collateral and bail bonds, call Woods Bail Bonds today! James Woods is a veteran in the bail bond industry and is happy to answer any questions you have about turning yourself in, outstanding arrest warrants, bail, and more. He and his team of licensed bail bond agents have been working in the bond industry for more than 30 years! Call them today at 317-876-9600 for questions about collateral and bail bonds in Indianapolis and its surrounding cities in Indiana.