• April 26, 2017

Questions to Ask Your Attorney About Surety Bonds

Questions to Ask Your Attorney About Surety Bonds

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Obtaining a surety bond can be confusing, but by working with your attorney and an experienced surety bond agency, you can move through the process with little trouble. If you are new to the process, start by asking your attorney these questions.

What Type of Surety Bond Do I Need?

There are numerous types of surety bonds, and each has its own purpose. The pending litigation or circumstances of your case will dictate which type of surety bond you need.

Here are a few types of common surety bonds:

  • Injunction: required when a judge restrains or injuncts another party.
  • Replevin: required when a party contends that property in the possession of another is owned by them.
  • Conservatorship/Guardian: required when a party is seeking to become a conservator of an estate/guardian to a party.

Your attorney will be able to help you understand the bond that you need and why.

What Will My Surety Bond Cost?

Surety bond costs vary depending on the type of bond, the bond amount and the financial standing of the party applying, but this is still a point that you should address with your attorney and an experienced surety bond agent. Until the exact details of your bond and the case it applies to are known the cost of the bond can fluctuate. However, working with a bond agent with experience in the area the bond is required can help give you a framework of the cost.

In many cases, the court will set a required bond amount or a party can request an amount, which generally affects the cost of the bond.

What Do I Need to Provide for Surety Bond Underwriting?

The surety bond underwriting process can include a review of the bond application, the financial history of the principal (the person applying for the bond) and commonly the details and information related to the court case.

The process varies depending on the type of bond you are seeking. It is important to discuss with your attorney what you will need to apply for a surety bond so that you have the best chances of being approved quickly.

How Do We Find the Right Surety Bond Company?

Understand what the bond company requires as part of their underwritings and make sure you understand the terms and conditions of the bond.  Some bonds may require collateral and being prepared to address that potential can be a want to have a bond denied by the court because they do not approve of the surety company that supplied it.

Ask your attorney about working with an agency. Surety bond agencies not only understand the surety underwriting process, they also work with state and federally approved surety companies. For more information on surety bonds and the underwriting process, contact The Patrick J. Thomas Agency today.

 

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.