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Here is What You Want to Know About Collateral Bail Bonds

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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.

Collateral Bail Bond Service Indianapolis Indiana 317-876-9600
Collateral Bail Bond Service Indianapolis Indiana 317-876-9600

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.

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7 Common Types of Collateral Accepted By Bail Bond Companies

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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.

Collateral Indiana Bail Bondsman
Indiana Collateral Bail Bondsman 317-876-9600

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.

Indiana Bail Bonds 317-876-9600
Indiana Bail Bonds 317-876-9600