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How Does an Appeal Bond Work?

Not every bond is there to let you leave jail. An appeal bond, instead, is a bond that you place to ensure payment of the judgement in case your appeal fails. In essence, it is a method for the state to protect itself from your potential bankruptcy. 

It’s not uncommon for the average person to have problems understanding how the U.S. justice system works. When it comes to the rules of appellate procedure, people often struggle with the concept of appeal bonds and their purpose. We’ll take you through the basics of these bonds in the following text.

What Is the Purpose of an Appeal Bond?

As we have mentioned above, appeal bonds have a very simple purpose – ensuring payments of existing judgements. 

Anyone can bring an appeal after an original judgment for your case. But, bringing an appeal doesn’t guarantee that you won’t have to pay. In fact, a lot of appeals get rejected by the courts and the appeal bond is used to cover the original judgement. 

The precise rules for these bonds will vary depending on the jurisdiction, state, and the differences between Federal and State Courts

A person posts an appeal bond to turn back the ruling of lower courts. This particular bond prevents people from abusing the system and asking for an appeal when the original judgment is correct. It also ensures that the appealing party submits to a judicial decision of the deciding court without leaving its jurisdiction. Furthermore, this type of bond ensures a fast collection of the judgment payoffs as soon as the ruling court confirms it.

What Is an Appeal Bond?

An appeal bond is a type of surety bond that is required by an appellant, which in that case is you. Your hope is to delay payment of a judgment until the appeal is over. In simple terms, a person will look for a way to delay payment since they are hoping that the higher court will change the judgment.

The cost of these bonds varies from case to case, but it is generally around 2% of the bond amount. Furthermore, you will be required to also post collateral worth 100% of the amount needed for the bond if you want to qualify for an appeal bond. 

What Are the Benefits?

In actuality, this is beneficial for both parties. For the appellee, it is insurance that they will be paid the exact amount when the appellate court affirms the ruling. On the other hand, the stay of judgment works for you as you don’t need to pay the court cost before the final verdict. In addition, it provides a form of middle ground in legal terms for both rights to appeal and recover. 

Of course, it also works to prevent people from abusing the appeals system to postpone paying fees or verdicts that they need to cover. And, if your appeal is proven to have good grounds and you overturn the verdict, your money is returned to you with very little drama or effort.  

Collateral, Cost, and Required Documents

Since these bonds are risky for the surety bond company, you will generally need to cover the full amount with collateral. Accepted forms of collateral generally include a wire transfer bank’s binding letter of credit. However, Houston Bail Bonds can accept various forms of collateral to better accommodate you. The cost of the bond is also called the premium. With full collateral, the premium is usually 1% of the total amount of the bond.

To obtain an appeal bond, you’ll need to submit the following documents to a bail bondsman:

  • Copy of judgment
  • Notice of appeal
  • Civil bond application
  • Financial statements

Get Your Appeal Bond at ABC Bail Bonds

If you’re looking to appeal a judgment, contact ABC Bail Bonds. We serve the Houston area, and we can guide you through the whole appeal bond process. You can call us by phone or email us any day of the week. With our help, you’ll easily acquire a Harris County appeal bond.

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