How Does a Bail Bondsman Make Money?

Bondsmen are a type of insurance agent in the criminal system. They act as grantor to the effect that if a person fails to appear for court, the amount of bail will be paid instead. Because of this, bondsmen usually have the authority to collect either the person or the bond in many legal ways. But for some, it's a mystery as to how they make their money.

Collateral

Bondsmen can take collateral as a down payment for a bail bond. If the person skips, the collateral becomes the possession of the bondsmen, who can then sell it to recover the loss.

Fees

Bondsmen charge a percentage of the bond up to 20 percent, plus fees. The bondsmen keep this as payment for issuing the bond.

Function

The function of a bondsman is to provide a guarantee that a person will show up for court dates. This acts as insurance to keep a person out of jail until the court date.

Bond Skip

If a person skips a court date, the bondsman has the right to use the same methods to recapture the person as a sheriff would with an escaped prisoner. Bondsmen often use bounty hunters and skip tracers for a bond skip.

Authority

Collateral can be in the form of car titles, deeds or other larger items. Because of this, the bondsman will have a signed document that allows him to collect the items if the person skips.

References

• Bondsman Article
• Interview with a Bondsman