RELEASE ATTACHMENT BOND By: www.suretybondauthority.com
RELEASE ATTACHMENT BOND What is a Release Attachment Bond? When a creditor (plaintiff) posts an Attachment Bond to seize the money or property of a debtor (defendant), the defendant may secure a Release Attachment Bond to regain possession of his or her property or money. But the debtor must provide a guarantee that the debt would still be paid should the courtâ€™s decision favor the creditor. In civil court cases, a Release Attachment Bond is allowed by the court to a defendant to counter an Attachment Bond purchased by a plaintiff A Release Attachment Bond is typically used in cases involving money owed by a party (debtor) to another party (creditor). An Attachment Bond allows a creditor to legally seize money or property in anticipation of a favorable ruling. The Attachment Bond guarantees that the creditor will be paid by the debtor.
RELEASE ATTACHMENT BOND What is a Release Attachment Bond? However, the debtor can counter this move by buying a Release Attachment Bond and ask the court to release the attached property or money back to him or her. But while the debtor regains possession of the property, he or she must ensure that the debt would still be paid in the event that the court rules in favor of the creditor. Once a creditor has obtained an Attachment Bond, the legal recourse available to a debtor is to purchase a Release Attachment Bond from a surety firm to regain possession of the seized property or money. The surety will then carefully review the case as well as the financial capability of the debtor before writing the bond. For issuing the Release Attachment Bond, is essentially giving the court a guarantee that the debtor has the financial capability to pay the judgment. The surety is also telling the court that it is willing to back that claim with their own funds.
RELEASE ATTACHMENT BOND Purpose of Release Attachment Bond
It serves as the best defense by a defendant
This provides a guarantee to the creditor when the court ruled in favor of the
to regain control of his money or property. It
plaintiff. However, the guarantee varies depending on the state. In some
legally cancels a creditorâ€™s legal maneuver to have his property attached to the litigation
states, the Release Attachment Bond guarantees that the property or its monetary equivalent will be available to settle the judgment. However, in other states, the bond provides payment guarantee to the creditor of the
and provide the creditor security about his
judgment, but also includes interests and costs, regardless of the value of the
claim until the court issues a final ruling on
property. The creditor also enjoys the right to sue the surety in his or her
RELEASE ATTACHMENT BOND What is the cost of a Release Attachment Bond? Each state has its unique rules to determine the amount of coverage for a Release Attachment Bond. It will also depend on the amount of money owned by the debtor to the creditor. Surety firms will compute the bond premium (the amount you pay to the surety for the bond) based on a total percentage of the total bond amount. Applicants with a good credit score or those with over 700 rating, can enjoy a lower rate, or between 1 and 4%. Those with unfavorable credit score will have a higher rate. Sureties are exposed to considerable risk when writing a Release Attachment Bond. One, the property may decline in value during the litigation or the debtorâ€™s assets may not be sufficient to satisfy a judgment for the creditor. Sureties should consider all these risk factors before issuing this type of bond. The prolonged attachment of property creates an additional hazard for the underwriter. It is normal for underwriters to require collateral when writing these types of surety bonds.
Know the purpose and cost of securing a Release Attachment Bond through this publication.