If you’ve been arrested then you likely have many questions on your mind. One of these concerns might be regarding how you can get out of jail quickly and affordably. In this case, working with a bail bondsman might be your best option.
Along with this, you may be wondering, can I declare bankruptcy and clear a bail bond debt? The short answer is, yes, you can file bankruptcy on a bail bond. However, it’s also important to first learn more about what a bail bond is and then discover more about bankruptcy and bail bonds in greater detail.
What is A Bail Bond?
You can think of a bail bond similar to that of a loan. If you or a loved one is arrested and charged with a crime then the criminal justice system or prosecutor can decide to let the person out of jail by paying a large sum of money to the court. If the person shows up to their hearings and court dates then the court will return this large sum of money to the defendant. The bail is the large sum of money that the defendant will pay to the court to get out of jail. However, in the case where the defendant skips out on court then the court retains the money and will issue a warrant for the defendant’s arrest.
The court date will likely be set and occur long after the person who’s charged with the crime is initially put in jail. Most people accused of a crime have jobs and families waiting for them and don’t want to have to sit around in jail for an extended period. Also, the bail can be set at high amounts and many people don’t have that kind of cash to cover the full amount. This is when a bail bonds company can step in and help.
How Can Bail Bond Companies Help?
A bail bond company will pay the full bail to the court and treat it like a loan coming from the defendant or loved ones of the defendant. There are consequences if the defendant chooses not to show up for court. In this situation, the bail bond company will begin the debt collection process against the defendant as well as anyone who has co-signed or guaranteed the bail bond on behalf of the defendant. In the instance the defendant does appear in court as required then the court will return the money to the bail bond company. The bail bond company will keep a percentage as profit and then there is no debt.
When a defendant doesn’t have assets or income then the bail bond company will most likely ask for a co-signer to participate. The cosigner will be responsible for paying the bail amount if the defendant doesn’t show up to court and pay back the bail bond.
Are There Situations When Bankruptcy Doesn’t Work on A Bail Bond?
An instance when bankruptcy won’t work on a bail bond is if there is collateral for the bond. If the bond is quite high then the bail bond company will only agree to pay the bond if they can take a lien against collateral. It’s similar to taking out a second mortgage against a piece of land or house. The majority of bail bonds won’t require collateral.
If the bail bond company, or lien holder, does its paperwork right then in most instances a lien against collateral will survive bankruptcy. Completing the paperwork correctly and successfully taking a lien requires an investment of time and money. Therefore, it’s not uncommon that a bail bond company thinks it took a lien when in reality it didn’t. If there is a failure to take a lien then the bankruptcy trustee will have a lien against the collateral in its place. Should this occur, then it’s likely the trustee will cut a deal with the debtor in bankruptcy for less than the full amount of the total bail bond.
Other Ways to Survive Bankruptcy
Another opportunity and way a bail bond can survive bankruptcy even if there’s no debt involved are when the defendant takes the bond fraudulently. The bail bond company can object to the bond going away with bankruptcy if they can prove that there is fraud. There is a three-month time limit that the bond company can do this so they must act fast. If no action is taken then the bond goes away even if it was initially taken out fraudulently. If the bail bond company wishes to prove fraud then they must hire a lawyer and successfully prove that the defendant or co-signer never planned to pay the bond in the first place.
Next Steps
Navigating the situation of you or a loved one being placed in jail can be tricky and frustrating. So, why go at it alone and play guessing games? If you or a loved one is stuck in jail then know that the bail bondsmen at Mr Nice Guy Bail Bonds can help. We offer some of the fastest releases from jail at a price you can afford. Not only do we have some of the lowest rates around but also provide easy payment plans and you can choose to complete the bail process online or over the phone. Contact us today for more information and to learn how the bail process works and gather additional details about declaring bankruptcy and clearing a bail bond debt.
Conclusion
You now have more information about bail bonds and what they are as well as declaring bankruptcy and clearing a bail bond debt. You do have options and don’t have to sit around in jail wondering when you may be released and see your family again. It’s best to be proactive and get ahead of the situation. For bail bonds in Southern California, we encourage you to call Mr Nice Guy Bail Bonds first. No matter your circumstances, we will offer fast service and can have an experienced bail bondsman be by your side in a matter of minutes.
