How Do Bail Bonds Work?

You’ve probably heard of the term bail bond before. You’ve heard it on TV, on the radio and you’ve probably read it from a newspaper but what exactly does it mean? What is bail and how is it different from bail bond and how do a proper bail bond procedure? You see, when someone commits a crime and they get caught and arrested, they will be sent to jail temporarily until the they are given a court date. They will stay in jail until the judge makes a decision to release them on bail.

Bail Defined

Bail is a set amount that serves as insurance between the defendant and the court. All defendants are given a chance to pay in cash, however, not a lot of defendants are able to pay cash in its full amount. Furthermore, most if not all bail is set at a very high amount making it impossible for defendants to pay it themselves, which is why they need the assistance of a bail agent or otherwise known as a bail bondsman. A bail bondsman will post a bail bond on their behalf.

Bail Bond Defined

A bail bond is considered a surety bond. It’s a promise made by a guarantor that he or she will pay a certain amount if the defendant will not be able to fulfill his or her obligation like following the contract agreed. A bail bond is a form of protection for the obligee from losses if and when the defendant fails to meet his or her obligation.

Two Kinds of Bail Bond

There are two different types of bail bond. The first one is a criminal bail bond while the second one is a civil bail bond. Let’s discuss each type.

Criminal Bail Bond – this type of bond will be used on individuals with criminal cases. This bail bond will guarantee that the defendant will make an appearance in trial and that he or she will guarantee payment for penalties and fines that are charged to him or her.

Civil Bail Bond – meanwhile, a civil bail bond is used on individuals with civil cases and serves as a guarantee to recompense for the debt besides the interest and costs that are charged to the person in jail.

How Bail Bonds Work

When a judge orders a specific bail amount and the defendant is not able to pay the bail with their own money they can ask for help. This kind of service is offered by bail bondsmen. In order to pay for a bail bond, the defendant is required to settle with a bail bondsman ten percent of the total bail amount.

The remaining bail amount will be paid through a collateral. Assuming the defendant does not have sufficient collateral to pay for the remaining amount, the bail bondsman can ask for financial assistance from friends and family of the defendant to cover the bail. In most cases though, an extra cash payment on top of the full collateral are needed for bail bond to be posted.

The defendants are required to appear in court when the judge has already concluded a court date but what happens if they don’t show up? What could possibly happen if they go AWOL?

If the defendant doesn’t show up at court the bail bond will of course be forfeited and the court will ask that the remaining ninety percent be paid. This will not be a major cause for concern for the bail bondsman because of the collateral provided by the defendant or the defendant’s family. The collateral can come in the form of stocks, jewelry, property, car etc. This will be used to pay the court of the remaining bail.

If the court case is concluded and the defendant did make an appearance for court then the bail bond will not be used and the collateral will be returned. However, the bail bondsman will still get to keep the profit amounting to ten percent of the bail bond amount.

There are certain states the ban the use of bail bondsman. Examples of these states include Wisconsin, Oregon, Kentucky and Illinois. Although these states still have bail bonds, instead of the 10% going to the bail bondsman, the money goes straight to court.

How to Become A Bail Bondsman?

The job of a bail bondsman is to provide money for bail in order to allow the defendant’s release before the trial. The temporary release period will help the defendant prepare for his or her case to be presented to the judge. A bail agent or a bail bondsman is responsible for assuring that the defendant will show up during the designated court date. Majority of bail bonds are actually financial agreements that are supported by a collateral (ex. real estate). Assuming that the defendant deliberately evades court date, the bail company can legally obtain the collateral. Since the collateral costs a lot, case in point, a property, 97% of defendants are compelled to show up at court. Although the process to become a bail bondsman is different for every state, majority follows the same process.

Here’s how you can become a bail bondsman.

Why Consider Becoming a Bail Bondsman?

As mentioned, bail bondsmen let defendants borrow money as long as they get a percentage of the bail amount. They can either work independently or they can be backed by an insurance company and called surety bondsmen. It is worth mentioning that commercial bail bonding is illegal in all states.

What Are the Career Requirements of a Bail Bondsman?

To become a bail bondsman, you should at least have a high school diploma. It’s also important that you are licensed and certified. The requirements to obtain a license vary in every state so make sure that you know what you need to process. Bail bondsmen should have excellent business and financial management skills and they should be familiar with local law enforcement agents. The median annual salary of a bail bondsman is approximately $32,000.

What Are the Steps You Need to Take to Become a Bail Bondsman?

Every state has different requirements so make sure you know what you need to do and what documents you need to comply with.

First Step: Do Your Research and Ask About the Requirements of Your State

The requirements for licensing vary in every state. Kentucky, Oregon, Illinois and Wisconsin forbid commercial bail bonds. There are no education requirements in Pennsylvania but they do require you to be familiar with state bonds law. It’s also recommended that applicants have obvious business signs and a registered telephone number as well as a representative to accept service of process.

Aspiring bondsmen should inquire about the fee, paperwork and education requirements from the office or from the state’s insurance department except for Arkansas that requires a bail bond state board. All of the state’s demand that bondsmen have to be legal residents or citizens and that they must be 18 years old and above. They are also required to be fingerprinted and to submit their credit history checks and their criminal record history if any.

Second Step: Undergo Necessary Education

The state of California and Washington as well as several other states recommend that you take a minimum of 12 hours of training and education before you take the licensing exam. Usually the training talks about state bonds law and insurance guidelines. Either an independent company or the insurance department provides the exams.

Third Step: Acquire the Necessary Licensure

Licensure is not a requirement for every state. There are states that want licensure for property and casualty insurance instead of a license specific to bail bonding. In order to get a license, you need to pass the exam and provide proof that you have complied with all the requirements established by your state. Basically, licensure exams cover topics that are related to the profession including court jurisdiction, liability, power of attorney, legal ethics and client rights among others.

Fourth Step: Learn about the Market and Start Having Law Enforcement Contacts

Those who wish to pursue a bail bondsman career should assess the demographics of their area before they initiate a bail bond agency. There are several factors to consider including connections to local law enforcement, competitors and location. When it comes to selecting a location make sure you know how many people in the area usually go to jail as well as the percentage that are released by commercial bail. You can know these pieces of information by building connections with local law enforcement communities.

Fifth Step: Get Insured of Gather Funds for Collateral

For you to establish a long-standing bail bonding business you have to have access to a massive amount of money to pay for the costs of the defendants’ bail. Bondsmen usually deposit their own money directly with the clerk of court to serve as an assurance for the bonds they write. The bonds can be worth more than the deposit. However, the ration of the deposit will be dependent on local law. If, for instance, the defendant doesn’t show up, the court will be obliged to obtain the bail deposit.

Sixth Step: Be A Part of a Professional Organization

There are several states that require continuous education in order to renew licenses. Aside from this, it’s also an advantage because it means a bail bondsman is kept abreast with new and existing state laws about bail bonding. Being a part of a professional organization like the Professional Bail Agents of the US opens doors of opportunities that allow you to enhance your knowledge in the field. You can also participate in workshops, conferences and seminars. It also widens your network and you can use this to gain new opportunities as well as business and legal advice.

If you are serious about pursuing a career for a bail bondsman make sure you are ready and committed because it takes serious dedication to become one.

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