How Does Bail Bond Make Money

When a person is arrested by the police, or in some instances, by the Immigration and Customs Enforcement (ICE) agency, it is almost always unexpected. Because of this, the arrest of a loved one is an especially trying situation. Family members and friends are typically most concerned about the safety and mental health of the person being held in a jail or detention center. They want to get their loved one back home as quickly as possible. In some cases, the arrested person will be released after a short period of time. In other scenarios, however, the only way to secure their release is through a bail bond or bail bond service. Many that are unfamiliar with these services or bail bonds in general wonder how these services work and how does bail bond make money.

A bail bond is essentially a form of collateral to ensure that the arrested individual will return to court for all their hearings. Bail is not offered to all who are arrested and the amount that is required varies greatly depending on each individual case. For instance, a person with no criminal record who is arrested for a relatively minor crime will likely be granted bail. Their bail amount would probably be set at a minimum. Meanwhile, someone with a lengthy criminal record who is accused of a more serious crime, may not be eligible for bail at all or they may receive a bail amount that is set to a maximum amount. Several other factors are considered when the judge determines eligibility and the final amount of each person’s bail.

Once the bail amount is set by the judge, family and loved ones of the arrested person must then pay this full amount for them to be released. Because arrests and the need for bail bond money are usually never anticipated in advance, loved ones often struggle to come up with these funds. This is especially true when the amount is set to a maximum amount. In these cases, loved ones simply cannot pay the full amount but they still want the arrested individual to return home fast. Instead of waiting until they can save or raise enough money to cover the bail bond cost, they turn to bail bond companies or bail bondsmen. While many have heard the term, most are not familiar with how these services work or how bail bonds make money.

A bail bond company works and makes money by selling the loved ones of arrested persons a surety bond for a percentage of the cost of the total bail bond amount. This amount varies from state to state but is typically around 10% of the set bail price. Bail bond services also frequently require collateral in addition to this payment, which may include the deed to a house, a vehicle or other valuable possession. This surety bond is essentially insurance that states that the arrested individual will still attend all future legal proceedings if they are released from a jail or detention center. From there, the bail bond company will pay a portion of the arrested individual’s bail and submit a guarantee to the courts to pay the remainder if the arrested does not comply. Afterwards, the arrested person is released from the facility they are being housed at and are able to reunite with their families.

Unlike a bond that is paid directly to the courts by loved ones, the percentage of the bail that is paid a company is not refundable– even if the individual complies fully with the terms of their bail. Instead, the percentage they pay in the form of a surety bond is taken by the company as a fee and this is how bail bonds make money. Collateral, on the other hand, will not be collected if the arrested individual complies. If they do not comply, however, the collateral will be taken and used to recuperate as much money as possible to cover the remaining funds that are then owed to the court.

It is important to note that a bail bond does not mean that the arrested person is free from their pending charge. It simply means that they can leave the jail or detention center while their case makes it way through the courts, which can be a lengthy process. At the conclusion of the case, the individual may be sentenced to jail time and a previous bail bond will not prevent this from happening. Likewise, when a bail bond is paid on behalf of an arrested person the sponsor (or person who pays the bail) should be confident that the arrested individual will comply with the terms of their bail. If they do not, they can be arrested again and the bail bond sponsor will not be eligible to receive a refund and may lose their collateral which can be a significant financial loss.

Considering a bail bond or immigration bond to get your loved one released from jail or a detention center? Contact us now to explore your option with a free consultation at 1-800-225-2587.