What is a bail bonds business?
In order to understand the business aspect of bail bonds, then you first have to understand how bail bonds work and why the notion of bail was enacted in the first place. Only then, can you fully understand what a bail bonds business is.
What is a bail bond?When a person is arrested and taken into custody by the county or the municipal police department, that person may be able to get out of jail by paying an amount of money set by the judge (bail) or hire a third-party agency to write an insurance policy guaranteeing their presence in court (bond).
Amount of bail determinants: severity of the crime, criminal history, and risk of flight. |
When talking about being released from jail, the words "bail" and "bond" are used almost interchangeably. This is a common mistake because these two things are quite different. A person can post bail by paying the full amount set by the judge. A bond is only available through a third-party, like a bail bondsman or an attorney licensed to write bonds in the state of Texas.
Bail is a way of ensuring that a defendant/inmate will show up for his or her court date. It is meant as a form of collateral left with the court, that when the defendant pleas his or her case in front of the judge and a judgement is set, then most of the money is returned (approx. 90%). If the person skips out on their court date, the amount of money paid gets forfeited to the Texas court that saw the case.
Bail is a way of ensuring that a defendant/inmate will show up for his or her court date. It is meant as a form of collateral left with the court, that when the defendant pleas his or her case in front of the judge and a judgement is set, then most of the money is returned (approx. 90%). If the person skips out on their court date, the amount of money paid gets forfeited to the Texas court that saw the case.
In Texas, who can write bail bonds?
When a person goes into custody, they will make a phone call to a friend or loved one to find a bonding company. Traditionally, this is the more common method of obtaining a bond. In the state of Texas, one can also hire a licensed attorney or lawyer to write the bond for them. They usually charge the same amount as a bondsman, but they follow more traditional hours of operation. Very rarely will you find an attorney who offers 24 hours bonding services!
What happens in court, in reference to bail?
A preliminary bail hearing is a held in the County or District Court to determine if probable cause exists to charge you with a crime. You are not allowed to testify or to offer evidence at the hearing, but you have the right to hear the evidence against you and to cross examine the state’s witness.
If the court finds no probable cause, charges may be dismissed. (However, the state’s attorney may refile charges later.) If you are charged with a felony or crime which must be tried in court and you have not been indicted by the grand jury, you have a right to a preliminary hearing.
During this bail hearing, one of the following things will happen:
1. Bail will be set.
2. You will be released on your own recognizance.
3. A Cash-Only bail will be set.
4. Your case will be dismissed.
5. Bail will be denied.
If the court finds no probable cause, charges may be dismissed. (However, the state’s attorney may refile charges later.) If you are charged with a felony or crime which must be tried in court and you have not been indicted by the grand jury, you have a right to a preliminary hearing.
During this bail hearing, one of the following things will happen:
1. Bail will be set.
2. You will be released on your own recognizance.
3. A Cash-Only bail will be set.
4. Your case will be dismissed.
5. Bail will be denied.
When does a bonding company come into play?
Depending on which county you were arrested or which city, it could be a few days before your preliminary bail hearing. For instance, in Tarrant County, Texas, it could be up to 3 days that you have to sit in jail before you see the judge. If you get arrested on Friday morning, it won't be until Monday morning that the judge will see you. You'll have to wait until then to speak to a Tarrant County bonding company. A bondsman can't do anything for you until bail is set by the judge or magistrate. When turning yourself in, this is very important to remember because it can throw a bit of a hiccup in your plans to just get in and get out.
For felony cases, they are more difficult to suggest general guidelines because some felonies are far more serious than others.
For the most serious felonies, (A felonies) Texas judges oftentimes refuse to set any bail at all. This is called REMAND. Occasionally judges can be convinced to set some bail on such cases, but it will be astonishingly high (for example, $250,000). Most of the time, however, judges simply REMAND people accused of A felonies.
Judges can occasionally be convinced to release people charged with less serious felonies without any bail at all or on what might be considered "misdemeanor" bail.
Robbery and Assault (felony) cases will often generate bail in the range of $1500 - $25,000 or more depending on the seriousness of the robbery, and the defendant's age and prior criminal history.
Realize that anyone with a prior felony criminal history who is charged with a new felony is almost certainly going to have significant bail set (meaning a likely range of $3500 - $25,000+)
For felony cases, they are more difficult to suggest general guidelines because some felonies are far more serious than others.
For the most serious felonies, (A felonies) Texas judges oftentimes refuse to set any bail at all. This is called REMAND. Occasionally judges can be convinced to set some bail on such cases, but it will be astonishingly high (for example, $250,000). Most of the time, however, judges simply REMAND people accused of A felonies.
Judges can occasionally be convinced to release people charged with less serious felonies without any bail at all or on what might be considered "misdemeanor" bail.
Robbery and Assault (felony) cases will often generate bail in the range of $1500 - $25,000 or more depending on the seriousness of the robbery, and the defendant's age and prior criminal history.
Realize that anyone with a prior felony criminal history who is charged with a new felony is almost certainly going to have significant bail set (meaning a likely range of $3500 - $25,000+)
How a Texas bail bonding company works
If the full amount of the bail is paid up front, that amount will be refunded (less a small administrative fee) when you’ve made all required court appearances. For instance, in Collin County, Texas, a bonding agent will accept a percentage of the total bail amount (typically 10% - 20%) to guarantee the full bail amount to the court. The bond seller’s fee is nonrefundable and the Collin County bondsman may require collateral to further ensure the defendant’s appearance in court. This same Collin County bail bonds company can redeem this collateral (car, home, or other valuable property) if the suspect fails to appear in court.
This is how a Texas bail bonds business works. The bonding company makes money off of the 10%-20% they charge. It is similar to a loan broker. That's why the bail bonds industry is 'technically' classified under financial services instead of legal services.
This is how a Texas bail bonds business works. The bonding company makes money off of the 10%-20% they charge. It is similar to a loan broker. That's why the bail bonds industry is 'technically' classified under financial services instead of legal services.