Attachments are used in court cases between a debtor (defendant) and a creditor (plaintiff). When a creditor is owed money, he/she might ask that the court have a sheriff seize the debtor’s property to satisfy payment of a judgement.
You can learn more about Attachments.
What is an Attachment Bond?
Before an Attachment can be issued, the court may require the plaintiff to secure an Attachment Bond.
An Attachment Bond (also known as a Writ of Attachment Bond) is a type of surety bond that guarantees that the plaintiff will pay all legal costs, fees and damages sustained, if the court decides the action or grounds for Attachment were not necessary.
An Attachment Bond also ensures the debtor will receive back his/her property.
How the Bond Works
The creditor purchases an Attachment Bond in an amount determined by the state or the court. The court trial begins. If the court rules in favor of the plaintiff (creditor), the bond becomes null and void.
If the court rules in favor of the defendant (debtor), though, the Attachment Bond will protect the defendant. The plaintiff will be required to pay all legal costs and fees. The plaintiff will also have to return the property to the debtor.
If something happens to the debtor’s property wrongfully, the debtor can make a claim on the Attachment Bond. The surety company who issued the bond will investigate, and if the claim is determined to be valid, pay the debtor for the damages incurred. Because of the nature of surety bonds, the creditor would ultimately be responsible for paying the surety company back in full.
How Much Does an Attachment Bond Cost?
The amount of the Attachment Bond will be determined by the court. However, oftentimes the bond amount must be double the amount claimed or double the estimated value of the property to be attached. The surety will usually require collateral to write this bond.
The amount required to secure the Attachment Bond (called the bond premium) is calculated based on a percentage of the total bond amount.
Getting approved for an Attachment Bond can be difficult, but if you work with an experienced surety bond provider, it can be done.