Court Bonds can be the most confusing kinds of bonds. Here\u2019s what I\u2019ve made out of the confusion:<\/p>\n
Court Bonds<\/a> relate to court proceedings, all of which involve two parties: the plaintiff and the defendant. So it makes sense that court bonds are divided into two categories: Plaintiff\u2019s Bonds and Defendant\u2019s Bonds. Both of these bonds are required as protection for the other party. Plaintiff\u2019s bonds protect the defendant\u2013bond the plaintiff to the defendant\u2019s protection, if you will\u2013and defendant\u2019s bonds protect the plaintiff.<\/p>\n An example of a Plaintiff\u2019s Bond\u2013one specifically called an attachment bond<\/a>\u2013would be if the plaintiff was claiming that the defendant owed him, say, several thousand dollars. The plaintiff could \u201cattach\u201d something like the defendant\u2019s car so that, if the court ruled in the plaintiff\u2019s favor, the defendant\u2019s car could be sold to pay the plaintiff his money. The problem with this is that the court may not rule with the plaintiff, which would be depriving the defendant of his car for no good reason. The plaintiff\u2019s bond assures that the defendant will be compensated for his loss, perhaps at the plaintiff\u2019s expense.<\/p>\n An example of a Defendant\u2019s Bond\u2013one specifically called a garnishment bond<\/a>\u2013would be if the plaintiff, let\u2019s say a car dealership, sold the defendant a car, to be paid for in monthly installments. If the defendant then didn\u2019t pay his bills from the dealership, they could ask the courts for the power to \u201cgarnish\u201d the money straight out of the defendant\u2019s salary. However, it\u2019s possible that the court might not allow the dealership to garnish the defendant\u2019s salary, and maybe instead would tell them to just take back the car. The the dealership therefore has to buy a garnishment bond<\/a> promising that they will cover whatever losses the defendant sustained from his salary being garnished, if it turns out that they\u2019re just going to repossess the car.<\/p>\n","protected":false},"excerpt":{"rendered":" Court Bonds can be the most confusing kinds of bonds. Here\u2019s what I\u2019ve made out of the confusion: Court Bonds relate to court proceedings, all of which involve two parties: the plaintiff and the defendant. So it makes sense that court bonds are divided into two categories: Plaintiff\u2019s Bonds and Defendant\u2019s Bonds. Both of these … Continue reading What are Court Bonds?<\/span>