05 May 5 Common Possessions Used For Bail Collateral
When you or someone you care about gets in trouble with the law, the first thing you want to do is find out if they are eligible for bail. If they are eligible for bail but cannot afford to pay it, the services of a bail bondsman are often used.
Bail bonds make it possible to get the defendant out of jail while he or she awaits their court hearing. This is good because it allows the defendant to get back to their job, family, and life instead of spending all that time in jail. It also allows the defendant to get things in order if it looks like they will be going to jail after their court date.
Bail bonds aren’t available in all cases, but they are an option for most people who get arrested.
While the laws require that bail cannot be excessive, the total amount is often more than most people have in cash at any given time. In those cases, people often have to find something to use as collateral.
But what exactly can be used as collateral for a bail bond? It can take many forms, so let’s take a look at the most common possessions that are used.
Using real estate for collateral can include land or a building, or any other property that you or a family member or friend is willing to offer.
Real estate that is primarily owned by the bank (property for which you still owe a mortgage or other debt) is generally not acceptable—it has to be property that you own or have a significant amount of equity in for it to be used as collateral.
Car titles as well as titles for other recreational vehicles such as boats, RVs, ATVs, snowmobiles, trailers, campers, and motorcycles can be used for bail collateral. Like real estate, this must be something that you own, not something for which you still owe payments to a creditor.
Stocks And Bonds
Another option for bail bond collateral is guaranteed stocks and bonds. If the value of the guaranteed investment exceeds the penal amount, the stocks and bonds can be used as collateral. You’ll just need to sign over legal ownership of the stocks.
The most common valuables used for bail collateral include jewelry, precious metal like silver or gold, and firearms. The bail bondsman must certify that the current market value of these items is equal to the cost of bail, and if the defendant fails to show up for court, these valuables will usually be sold to recoup the money.
Televisions, desktop and laptop computers, video game systems, and other electronics are common bail collateral items since they can be pawned for cash if necessary.
Should You Use Bail Bond Collateral?
When you decide to put up cash or collateral to help bail a loved one out of jail, you are giving them the chance to continue working, spending time with their family, and prepare their defense case.
Deciding what to put up for collateral is often a matter of identifying what you have available that will properly settle the bail bond debt if necessary. The good news is that if the defendant shows up for his or her court date as scheduled, the bail money is returned and you get your collateral back.
At Armstrong Bail Bonds, we’re a third-generation company—so we know and understand bail bonds extremely well. However, the average person doesn’t typically know much about bail bonds until they are put into a situation where it’s necessary to learn. Unfortunately, that’s usually when someone they care about is arrested.
If you have questions about bail bonds or need the services of a bail bondsman, please contact us at Armstrong at any time!