When a creditor sues a debtor to secure possession of a property they believe they have legal right to, often times an Attachment Bond or Replevin Bond is required by the creditor. A bond is required to ensure that the debtor will receive back their property if the court finds in favor of the debtor, or if the property should not have been seized.
Though Attachment Bonds and Replevin Bonds are the most common, there is another type of bond that can come into play in scenarios involving the seizure of a property: Sequestration Bonds.
What is a Sequestration Bond?
A Sequestration Bond performs similar to an Attachment Bond or Replevin Bond, but an added effect to them is that they allow a sheriff or marshall to seize and hold a specific piece of property that a defendant is about to dispose of, sell, or remove beyond the court’s jurisdiction.
A Sequestration Bond allows the property to be seized before a judgement on the case is made. Usually, the property seized is held in the sheriff’s or marshall’s custody until the case has concluded.
If during the case it comes about that the debtor’s property was seized wrongfully, the surety company who issued the Sequestration Bond will investigate the claim, and if appropriate, pay the debtor for the property or any losses incurred. Because of the nature of surety bonds, the creditor who got the bond would be responsible for paying the surety company back in full.
How to get a Sequestration Bond
Sequestration Bonds are written infrequently, but with the right case and the right surety bond company, it is possible. If you are in need of a Sequestration Bond, you will need to contact a reliable surety bond company who can issue you your bond.
Surety Solutions specializes in surety bonds, even court bonds. If you have questions about getting bonded, give us a call today at 866.722.9239.