When you need a licensed bail and you don't have cash, then you may be asked to put up collateral. Many forms of property are acceptable as collateral as long as it can be converted to cash to cover the cost of your bail if it's forfeited. Like cash bonds, collateral bonds have risks. Here are some answers to questions you may have about using collateral for your bail bond.

What Property Is Eligible?

Property must have value equal to or more than your bail bond. Examples of acceptable collateral include the following:

Home or Property

You can use your home or vacant property for your bond. You must have enough equity to cover more than the full bail amount.

Jewelry

Jewelry with precious metal or gems, like gold and diamonds, are excellent choices. However, you may be asked to pawn these items for cash, first.

Vehicles

Your car, boat, motor home, plane, and motorcycle are all usable as collateral, especially if you have paid them off.

Electronics

Electronics include computers, phones, video game consoles, and cameras among other items. New or near new condition usually has the best value.

Stocks and Bonds

You can use your brokerage account or even another bank account as collateral provided they are worth more than your bail.

How Is the Collateral Handled?

All collateral is documented. If you use a valuable item like a house or car, then the bond agent will hold on to the title or deed until you finish with your case. During that time, you will be able to use your car and live in your home as usual. The bond agent may hold on to smaller items and give you a receipt. Like cash, collateral will be returned in a timely manner once you meet all your court obligations.

What Happens if Bail Is Forfeited?

If you fail to show up for your court cases or don't follow court restrictions, you could lose all your collateral plus your bail fee. Within a reasonable time, your collateral will be sold for cash. Any amount left over after the sale will be returned to you. An easy way to avoid this issue is to keep track of your court dates and do what the judge tells you to do.

Collateral is a good way to cover your bail bond if you have no other alternative. By law, bond agents must take proper care and documentation of your collateral. Therefore, your risk with collateral is not too different from cash, provided you follow all the rules. Make sure you read through your contract carefully before you make a decision. For more information on using collateral, contact a bail bond service.