How Do Bondsmen Make Money?
How Do Bail Bondsmen Make Money?
When one is arrested for a crime, he or she may choose to request bail. A bail bond is nothing more than a financial arrangement made with a third party to provide the funds needed to secure the release of the person accused of a crime. When one obtains a bail bond, they make an arrangement with a third party to provide these funds, in exchange for some type of collateral. Collateral comes in many forms, including cash or assets, and the court ultimately determines the amount of bail needed to secure this release. The bail bondsman guarantees the defendant will appear in court on his or her scheduled day, and many wonder, “how do bail bondsmen make money?”
To answer the question, “how do bail bondsmen make money?,” one must understand how the bail process works. When a bail bondsman provides the funds for a defendant to be released from jail, he or she charges the person providing the collateral a fee. This fee is typically ten or 15 percent of the amount required by the court as bond. This fee is non-refundable, even when charges are dropped after the defendant posts the bail, as the bail bondsman charges this fee as his or her payment for services rendered.
In addition to the fee charged, the bail bondsman requires some type of collateral be put up for the bond. If the defendant is unable to put up the required assets, friends or family members may do so on his or her behalf. Anyone choosing to do this to help the defendant needs to understand that the assets may be lost if the defendant doesn’t appear in court as required. The assets are used to cover the bond in this situation because the bail bondsman is putting his or her own money up and wants this money back if the bond agreement isn’t fulfilled.
The bondsman has other options in the event the defendant doesn’t appear in court. He or she may choose to hire a bounty hunter to find the defendant and bring him or her to court. When this step must be taken, the bondsman can sue the defendant for the money. The bounty hunter receives his or her money from the funds provided to the bondsman, up to ten to 20 percent of the bail bond, therefore, the person putting up the funds may not receive all monies back, even when the defendant does show up at court. The person fronting the money must understand this also.
The goal of the bail bondsman is to ensure the defendant makes his or her required court appearances, and he or she has many options available to recoup the money, including claiming assets of the person who secured the bond. The bail bondsman is operating a business and clients need to understand they will be held accountable. If one wishes to secure his or her release, the person must understand they need to be at all court appearances, right up through the trial and until the court releases the case. The bail bondsman accepts responsibility for the defendant and takes this process seriously. The defendant needs to do the same or pay the consequences.