The bail bondsman asked me to use my stocks as collateral for the bail bond that I need. Is this legitimate?

Yes. There are a wide variety of ways in which you may be able to pay the down payment for your bail bond. Using any stocks that you have is one way that many bail bonding agencies suggest. These stocks can either be cashed in order to pay the bail bond down payment in full, or they can be retained as collateral by the bail bonding agency.

Many bail bonding agencies will also want to look at your other collateral as well before they agree to pay for your bail. Stocks are only one form of collateral. Other collateral may include cash or it could include real property, such as a boat, a car, or a house. This collateral is an assurance that if you do not show up to court on your day of trial, the bail bonding agency will have access to funds that will help to cover the cost of the money that they lost. This collateral may also be used to pay the down payment.

Keep in mind that when you hire a bail bonding agency to get you out of jail, you are paying a hefty fee for the services of the company. These services will actually pay the full amount of your bail. You only have to pay a down payment, which is usually about ten percent of the cost of the bail. This down payment is not refundable to you, so whatever money you turn over to a bail bonding agency is lost. However, as long as you show up in court on the day of your trial, the money that the bail bonding agency out up for your bond is 100 percent refundable, less some administrative fees.

Now, just because a bail bondsman asked you to put up your stocks as collateral does not necessarily mean that you have to do so. When you put the stocks up, you may lose the full amount of the stocks. If you are uncomfortable turning over your assets to a bonding agency, you can simply refuse to do so. If you refuse to do so, then you are always entitled to refuse the bail bonding service. If you refuse, then you can either stay in jail while you await your trial, or you can find another means of paying for your bail. The other means may involve taking on a private loan or appealing to friends and family members for help.

When it comes to affording your bail, sometimes if you can pay cash, you will have to turn over your assets as collateral. This is entirely normal and should not concern you one bit. However, it is important that you are comfortable with this arrangement before you sign over your assets as collateral; you could stand to lose them completely.