Appeal bonds are difficult to qualify for. Applicants must post collateral worth 100-110% of the bond amount AND pay a premium to be approved for this type of surety bond.
An appeal bond ensures that the court’s original judgment will be paid if an appeal is unsuccessful. The party appealing the court’s ruling is required to purchase this type of bond in an effort to discourage frivolous appeals. If these bonds were not required, abusing the appellate system would be much easier. For example, a party might file for an appeal to stall payment if they cannot afford the court ordered sum.
With the surety bond requirement in place, the ability to save money through an appeal is limited. The person filing for the appeal must acquire a court bond to cover both the cost of the original judgment (if the appeal fails) and the court costs associated with the appeal. Surety bonds are required whether a case’s defendant or plaintiff files the appeal.
The bond also protects the interest of the party that the court ruled in favor of during the first proceeding. If the losing party — whether an individual or business — goes bankrupt during the appeals process, the bond ensures that they will still compensate the other party as required.
Find Out If You Qualify For Free.
Each appeal bond premium is calculated on a case-by-case basis. In most cases, these bonds require that 100-110% of the principal party’s collateral be posted upfront. Sometimes an individual’s credit score affects the bond’s premium, but other financial credentials are typically more important. In most cases, appeal bond applicants with bad credit scores can expect for their collateral to weigh more heavily on their bond application and contract.
Get Your Bond In Just Two Days.
The bonding process begins when you fill out our online contact form or call us at 1 (800) 308-4358 to speak with an expert surety specialist. At this time, your account manager will walk you through the application process, collecting all necessary information and verifying your credentials. Once your application is complete, we’ll shop your bond around to find the best rate possible. In most cases, this process takes just two to three days.
If you’re satisfied with your free, no-obligation price quote, your bond will be issued as soon as payment is processed. You’ll receive a copy of your bond via email, and your original bond form will arrive via your preferred shipping method. Overnight shipping is available if you need your bond in a hurry.
Learn More About Surety Bonds.
Like all surety bonds, appeal bonds act as a financially-binding contract that join three parties together:
- principal: The principal is the party seeking an appeal. The principal purchases the bond as financial reassurance to the court.
- obligee: The obligee is the court that requires the bond to prevent financial loss and avoid pointless appeal cases.
- surety: The surety is the underwriter that issues the bond and backs the principal’s appeal case.