Release Attachment Surety Bond
Within a court of law, creditors (plaintiffs) have the right to seize money or property from debtors (defendants). In some cases, they may even be able seize those assets before a judge hears either side of the argument. However, defendants may block that action with the right kind of bond - known as a release attachment bond.
What is a Release Attachment Bond?
A judge will allow a creditor to seize assets before a hearing as long as the creditor has what's known as an attachment bond. In response, defendants can secure a release attachment bond, which allows the defendant to keep their property or forces the creditor to return it pre-hearing. After the hearing, if the judge rules against the defendant and that person refuses to turn money or property over to the creditor, the creditor may file a claim against the bond. The surety company backing the bond guarantees to pay for all valid claims, but the bonded party must then pay the surety back. Essentially, bonds hold debtors accountable for paying creditors back.
How does a Release Attachment Bond work?
It basically works to block an attachment bond. Defendants have control of their property through the duration of the civil case, but if the judge rules in favor of the plaintiff (the creditor), bonds ensure they get what's owed.
Who should get a Release Attachment Bond?
Defendants involved in civil litigation where the plaintiff has already filed an attachment bond. If and when you're eligible to obtain a release attachment bond, the courts and your counsel should make it clear. Without a bond, you must turn over your property or payment, so don't wait to find a surety brokerage to partner with.
Who are the parties involved in a Release Attachment Bond?
These bonds involve three parties:
- Principal - The bonded party - the defendant
- Obligee - The bond beneficiary - the plaintiff
- Surety - The bond company
How much does a Release Attachment Bond cost?
That depends on the value of the bond, which is set by the courts according to state statutes and the value of the property in question. Premiums cost a small percentage of the bond. Applicants with high credit scores typically pay less than applicants with low scores, but applicants are rarely denied because of credit.
How are claims handled for Release Attachment Bonds?
Before paying out any claims, the surety will conduct a thorough investigation to prove whether the claim is valid. If so, the principal has the opportunity to settle its debt to the obligee, but if they refuse for any reason, the surety agrees to pay for the damages. The claim may be settled at this point, but the principal must still pay the surety back, possibly with interest and fees added.
How to apply for a Release Attachment Bond?
Applying for a bond is as easy as completing an application with information about your background and finances. You will also need to supply a copy of the court order requiring the bond, and any additional paperwork the surety requests. Underwriters at the surety will use this information to evaluate your risk and quote you a price for the premium. After you pay, the surety supplies you with documentation proving you've met the court-mandated bond requirement.
Viking Bond Partner - Nationwide Surety Brokerage
When you need a release attachment bond in any state valued at any amount, rely on Viking Bond Service to make the process easy and affordable. Get answers to all your questions using the contact form on this page or by calling 888-278-7389. Or get started immediately by filling out our online bond application 24/7!
Getting a Surety Bond is not difficult. Viking can guide you from start to finish. Learn what is involved in the bonding process.
You may still be able to get approved despite challenged credit.
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