Appeal Bonds

What Is an Appeal Bond?

An appeal bond, also known as a “supersedeas bond,” is a contract guaranteeing payment of the judgment if a court appeal is unsuccessful. The surety provider who issues the bond provides financial security to the winning party if the losing party lacks sufficient funds. 

SuretyBonds.com is legally licensed to issue appeal bonds in every state. We offer the best service, fastest delivery and most affordable prices in the industry. 

What Is the Purpose of an Appeal Bond?

Appeal bonds are usually necessary if you're appealing a money judgment and don't want to pay the judgment until the appeal is final. Appeal bonds discourage frivolous appeals and prevent abuse of the appellate system. 

For example, without an appeal bond, a party could file an appeal to stall payment of a court-ordered sum. An appeal bond ensures the responsible party will pay the sum if the appeal fails.

How Much Does an Appeal Bond Cost?

The premium costs on appeal bonds vary but are typically 1-3% of the bond amount. In addition, most applicants must post collateral worth the full bond amount to qualify for approval. 

When collateral in the full bond amount is posted, the applicant's credit report and financial condition don’t typically impact the bond cost.

How Does an Appeal Bond Work?

Appeal bonds work by providing different advantages to the three parties involved:

• The Appealing Party: An appeal bond prevents the other side from starting collection proceedings. 
• The Judgment Creditor: Appeal bonds can save creditors time and money during the collection process.
• The Courts: Appeal bonds prevent people from filing a frivolous appeal or using the appeal time to "disappear" their assets.

How Do I Get an Appeal Bond?

Appeal bonds are used for judgments in county, district, federal, superior or even supreme court proceedings per each court's appellate procedure. Follow these three steps to get your appeal bond:

1. Check with your lawyer. Ask your lawyer if an appeal bond is necessary for the appellate procedure.
2. Determine the appeal bond amount. Most states require the bond to cover the judgment plus costs and interest. Work with your lawyer to determine the exact requirements.  
3. Contact a surety provider. You can apply online or call to speak with a SuretyBonds.com expert who will walk you through the appeal bond process.

How Do I Apply for an Appeal Surety Bond?

Appeal/supersedeas bonds are inherently risky and require underwriting. You'll need to provide the following documentation as part of your application:

• A copy of the judgment
• The notice of appeal
• A collateral security agreement

Why Do Appeal Bonds Require Collateral?

For better or worse, many appeals do not succeed. Judgments must be paid quickly, so surety companies must prepare to pay if the appeal loses. This is where collateral comes into play. 

Providing collateral upfront offers numerous advantages to the appellant:

1. Avoid collections. You’ll save money, time and stress by not having to fight collections proceedings while pursuing the appeal.
2. Earn interest. If you provide cash collateral, you’ll earn interest.
3. Maintain flexibility and control. In addition to cash and letters of credit, some sureties accept securities or even real estate as collateral.  

What Are Acceptable Forms of Collateral?

If you have sufficient liquid assets to qualify for a collateral waiver, you can submit a financial statement as a part of your application. Collateral waivers typically require significant liquid assets such as cash and securities accounts, so you should always prepare to ultimately provide collateral.

Acceptable forms of collateral may include:

• Cash
• Letters of credit
• Securities
• Real estate

Once the collateral is secured, you can finalize your appeal bond purchase online.

How Fast Can I Get an Appeal Bond?

As soon as your payment is processed, your appeal bond documentation will be issued. You'll receive an instant digital copy of your surety bond and your physical documentation will be delivered via mail. 

If you need your appellate bond as soon as possible, choose overnight shipping at checkout.