Attachment, Replevin & Injunction Bonds
Attachment bonds protect defendants in legal cases where seizure of property is involved. If a court has ordered you to obtain an attachment bond, Surety Bond Professionals is here to help you get what you need. Learn more below, or contact our experienced surety agents for assistance with any questions you may have.
What Are Attachment Bonds?
Attachment is a legal process used in resolving court cases involving a creditor as the plaintiff and a debtor as the defendant. A creditor has the right to petition the court for seizure of property belonging to the debtor in satisfaction of a judgment against the debtor. The seized property is subsequently used to pay off the judgment. For example, an attachment may be issued against a bank account belonging to the defendant or against the defendant’s salary.
The purpose of an attachment bond is to protect the defendant against financial loss in the event that the court rules against the plaintiff. The bond guarantees that the defendant’s property will be returned in these cases and that the plaintiff will compensate the defendant for any damage or loss the defendant experiences as a result of the lawsuit. The bond also guarantees that the defendant’s court costs and legal fees will be paid by the plaintiff if the attachment is ruled to be unwarranted.
Who Needs Them?
Courts commonly require plaintiffs to obtain an attachment bond when they file suit requesting attachment of the defendant’s property.
How Do They Work?
If the judge rules in favor of the plaintiff, the bond is canceled, as the attachment will stand and the defendant’s property will not be returned. In rulings that favor the plaintiff, the bond will be used to satisfy the defendant’s debt to the plaintiff.
However, if the defendant prevails in court, the plaintiff must return the defendant’s property and pay the defendant’s legal costs and fees related to the case. If the property was damaged or somehow diminished in value while it was attached, the debtor has the right to file a claim against the plaintiff’s attachment bond.
If the surety company deems the claim valid, it will pay the claimant for the damages. However, the plaintiff, as the principal in the bond contract, must reimburse the surety company in full.
What Do They Cost?
The court establishes the required amount of the bond, which is often double the value of the property the plaintiff is requesting to be attached. To obtain the bond, the plaintiff will pay the premium determined by the surety and may be required to put up collateral as well.
The premium is a small percentage of the required bond amount. The underwriters will set the premium rate depending on the applicant’s credit score and overall financial strength, as well as the relative merits of the case and the likelihood of a favorable ruling.
Similar Court Bonds
There are a couple of common court-ordered surety bonds that function in much the same way as attachment bonds. They all protect the defendant in a lawsuit against financial loss or damages in the event that the court rules against the plaintiff. These include:
Replevin, also known as “claim and delivery” or “revendication,” is another type of legal recovery process. Unlike attachment, which returns property or pays comparable financial damages to a winning defendant, the process of replevin applies only to physical property taken from a defendant by the plaintiff.
A replevin bond guarantees return of the physical property to the defendant and the payment of the defendant’s legal costs and fees if the plaintiff loses the case.
An injunction is a court order that requires one party in a lawsuit to do something or refrain from doing something. The court can order an injunction to either party in a lawsuit. When that happens, the opposing party is required to obtain an injunction surety bond.
Most often, it’s the plaintiff who files for an injunction ordering the defendant to refrain from a particular action until the lawsuit has been resolved in court. The injunction bond protects the defendant from any damages that result from the injunction if the court dismisses the plaintiff’s lawsuit.
Our surety bond professionals will help you with your bond need easily and quickly. Apply now!