Bondsman: Meaning, Work, Example & Disadvantages

What is Bondsman?

A bondsman is a person who provides bond assurances. The most common use of bondsmen is in the context of providing bail for criminal defendants. An individual who posts bail for those accused of crimes but lacks the funds to fully post bail with the court is known as a bail bondsman. By guaranteeing that the prisoner will show up in court, the bail bondsman serves as a surety by giving the court the money required for the defendant’s bail.

Usually, the bail bondsman will charge the defendants 10% of the bond amount as a non-refundable fee. This sum of money is what the bail bondsman is paid for posting the whole bond amount. The bail bondsman gets the whole bail sum plus the defendant’s 10% fee if the defendant shows up for court again. The bail bondsman will forfeit the money they paid toward the defendant’s bail if they are unable to track them down and persuade them to appear in court. If the defendant fails to appear in court, they will retain the 10% fee from the defendant.

Key Takeaways:

• A bondsman is a person who guarantees bonds. Bondsmen are most frequently used while granting bail to criminal defendants.
• The bond agency provides the court with a surety bond to release the offender once the bail bonding agent or corporation has paid its fee.
• There is no more money that has to be given to the bail bond agency as long as the defendant complies with the court’s appearance requirements and doesn’t skip any court appearances.
• The bail bond system is robust and is operated under high regulations. For instance, the California Department of Insurance is used to oversee the state’s bail bond system, and the California Penal Code applies to the sector.

How Bail Bond Work?

1. Judge Sets Bail: A judge will usually hold a bail hearing for someone who has been charged with a crime. The judge has the authority to set the bail amount. If the prisoner faces serious charges or seems likely to pose a slight risk, the court may completely refuse bail or set it at an absurdly high amount.

2. Amount of Bail: Judges can set bail with a great deal of discretion; the average amount varies depending on the jurisdiction. The amount of bail for a person facing a nonviolent misdemeanor might be $500. Bail for felonies is often rather expensive, often amounting to $20,000 or more.

3. Choices of Defendant: The defendant has the following options when the bail amount is determined:

• Stay in jail until the allegations are settled during the trial.
• Set up a bail bond.
• Until the case is concluded, pay the entire bail amount.
• Certain jurisdictions allow their courts to take title to a home or other valuable collateral in place of money.

4. Written Commitments to Court: Bail bondmen, sometimes known as bail bond agents, provide criminal courts with written commitments to pay the whole bail amount in the event that the defendants whose presence they guarantee don’t show up for their scheduled trials.

5. Commission to Bondsmen: In exchange for their services, bail bondsmen often demand 10% of the whole bail sum upfront. They may also impose extra costs. There is 8% restriction on the amount charged in certain states.

6. Declaration of Creditworthiness: A creditworthiness declaration or the defendant’s surrender of assets or other property as collateral may also be demanded by the agent. In general, bail bond agents take the majority of valuable property, such as stocks and bonds, in addition to vehicles, jewels, and homes.

Example of Bail Bond

John Smith, a resident of New Jersey, finds himself in legal trouble and has been charged with a crime. His bail was set by the court at $10,000. However, John doesn’t have the full amount in cash to post bail, and he doesn’t want to remain in jail while his case is being adjudicated. In such situations, individuals often turn to bail bondsmen to secure their release. Let’s walk through how John utilizes a bail bond to meet his bail requirements and gain temporary freedom while awaiting trial.

Here is a brief explanation of this example:

• Bail Amount: John Smith’s bail is set at $10,000 by the court.
• Contacting a Bail Bondsman: Since John doesn’t have the full $10,000 in cash to post bail, he contacts a bail bondsman to arrange for a bail bond.
• Payment to Bondsman: John pays the bondsman $1,000, which is 10% of the total bail amount, as compensation for their services.
• Collateral: To secure the remaining $9,000 of the bail amount, John or a family member provides the bondsman with collateral of equal value.
• Court Appearance: John complies with the court’s rules and attends all scheduled court appearances.
• Conclusion of Trial: At the conclusion of the trial, John gets his $9,000 collateral back from the bondsman, but he doesn’t receive the $1,000 fee paid to the bondsman.

Disadvantages of Bail Bond System

The argument about the bail bond system has been raised a lot recently. Some of the major arguments are:

1. Lower Income Group Unable to Pay Upfront Installment: Many people, including some in the legal profession, believe that the bail bond system is unfair since it forces low-income defendants to remain in jail or find 10% of the bail amount in cash and the remaining amount in collateral before they are even given the opportunity to face criminal charges. According to the Prison Policy Initiative, 5,36,000 or so Americans are being detained in jails due to their inability to pay for bail or the services of a bail bondsman.

2. Impact on the Use of Collateral: If the accused fails to appear in court after their family has paid the required bond, The whole bond sum has now been lost by the family. This might cause the defendant’s extended family to experience financial hardship. If they used collateral (a house, for example) to get the bond, they could be facing foreclosure.

3. Employing Bounty Hunters: It has been said frequently that bounty hunters are “acting as wildly unregulated quasi-police.” They may resort to using lethal force in order to recoup their “unpaid installments.” Bounty hunters take advantage of their victims in order to collect outstanding skip fees.

4. Unfair Practices: Four states—Illinois, Kentucky, Oregon, and Wisconsin—have abolished bail bondsmen, requiring a 10% deposit on the bail amount to be placed with the court, and also because of using unfair practices for recovery. California decided in 2018 to remove monetary bail from its judicial system.

Conclusion

Bail bondsmen offer the monies required to release a criminal defendant prior to trial, which are often secured by property collateral or a co-signer. Bail recovery agents are normally in charge of hunting down, arresting, and returning a fleeing criminal to court. Individuals might be charged with a wide range of offenses, and there are several sorts of bonds that can permit pre-trial release. These bonds often carry varying levels of financial risk, and bail bondmen who issue the most popular forms of bonds may not provide bonds with greater risk.

Bondsman- FAQs

Will I receive my bail money back?

It depends. In New York, for example, if you attend all of your court hearings, your bail money will be returned to you at the conclusion of your case. If you are found not guilty or your case is dropped, you will receive 100% of your bail money back. If you are convicted, it will be repaid, minus a 3% charge. Furthermore, you must attend all court sessions or risk forfeiting your bond.

What happens if I can’t post bail?

If you can’t afford to post bail, it’s probable you’ll stay in jail until your legal proceedings are concluded.

For a bail bond, what can be used as collateral?

A variety of collateral is accepted by bail bond agents, such as jewellery, automobiles, real estate, credit cards, stocks, and bonds.

What are federal bonds?

Federal bonds are those that are given as bail to defendants accused of federal offenses. Federal bail bonds, in contrast to more typical surety bonds, promise that the prisoner will appear in court and that they will abide by all pre-trial requirements.

What are immigration bonds?

Immigration bonds are necessary to ensure a person’s release from an immigration detention facility. Bond receivers may be detained in municipal or county jails, but they are often under the supervision of Immigration and Customs Enforcement, a federal department.

References:

• New York City Department of Finance
• Cornell Law School

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.