Bail bonds are an excellent way to secure their loved one’s release. The process is simple and quick. They can also be used to secure personal property such as gold bullion or even a savings account.
However, for-profit bond companies and insurers make huge profits off of this transfer of debt and risk. This system needs serious reform.
Quick Release
Bail bonds allow defendants to escape jail quickly while awaiting their trial. This is important because staying in jail can impact a person’s career, personal life, and family. However, not everyone has enough cash to cover the full bail amount. That’s where bail bond companies come in.
A bail bond company acts as a middleman between the defendant and the court, posting the necessary amount in exchange for a fee. Typically, the price is 10% of the total bond amount. Collateral property, such as a house, car, or jewelry, can secure the bond. The collateral will be returned at the end of the case if the defendant appears in all required court proceedings.
A vehicle is a popular piece of collateral because it is easily verifiable and typically worth at least as much as the bond amount. People who use their vehicles as collateral usually keep them so long as they follow the conditions of their bond.
Repayment Options
Regardless of whether you can afford to pay in full or need a payment plan, the bail bond industry has options available. Payment plans are often based on the customer’s credit score and employment record. Having a co-signer with good credit can also make it easier to establish a payment arrangement.
Some companies require a small down payment and charge a percentage of the bond amount each month. They may also offer insurance that covers the bond cost if your loved one skips a court date or violates other terms of release.
Bail bonds are a quick way to get your loved one out of jail, but they can be risky. If your loved one fails to show up for court, the bondsman can forfeit the bond and send them back to jail. This is why discussing repayment options with a bondsman early on is essential. This will give you the best chance of a reasonable payment plan.
Ensures Your Safety
If your loved ones are in jail, you should consider bail bonds to guarantee their safety. Bonding companies can help you get them out of jail quickly and easily, allowing them to return to work and school. They can also provide payment options that reduce the financial impact of the case.
Typically, a bail bond company will require an Irrevocable Letter of Credit (ILOC) or cash as collateral. However, some bond companies allow you to use your investments as collateral, a process called securities-based lending. You can discuss this option with your broker and see if it is an appropriate solution.
The for-profit bail industry does $14 billion in bonds a year. It is increasingly backed by extensive global insurers that operate multiple layers of opaque corporate structures between their insurance operations, bond-insurance businesses, and bail-bond storefronts. These companies have a lot of political influence and can prevent reforms to the pretrial system.
Reduces Stress
When a loved one is arrested, it can be very stressful and could cause anxiety attacks. Luckily, the bail bond industry can alleviate some of this stress by helping the family get their loved one out of jail quickly and easily.
This can reduce the time a person spends in jail before their trial, which ultimately saves them money and helps them recoup any losses they have suffered. In addition, the bail bond agent can help the family find financial resources that can be used to pay for the bail bond if they cannot afford it.
Read Also: What Are PFAS and Why Does North Carolina Keep Having Issues With it?
If you are considering investing in the bail bonds business, you should know that it is a very high-risk venture. Bail Bonds are a type of surety bond that large global insurers back. The insurer can be liable for the entire bond penalty if the defendant does not appear in court.
