What is a garnishment bond, and how does it work?
A garnishment bond is a type of surety bond required when a plaintiff seeks to garnish a defendant’s wages, assets, or bank accounts before a judgment is reached. The garnishment bond allows a 3rd party, such as a bank, to hold onto the funds until a final decision is announced.
Why do states require garnishment bonds?
States typically require a plaintiff to use a garnishment bond when garnishing wages because it protects the defendant against any financial loss. This type of surety bond is an attempt to prove to the court and state that the plaintiff has a high chance of winning their case and is not a frivolous attempt to garnish wages without cause.
How much does a garnishment bond cost?
The cost of a garnishment bond varies depending on the state, the amount of wages being garnished, and the amount of collateral needed. Surety bond companies want to ensure an applicant can pay any damages should the state deem the garnishment unnecessary.
For example, the amount of a garnishment bond in Florida will be double the amount the plaintiff seeks to garnish. The bond must also cover court costs and interest.
Appeal bond cost depends on the total value of the money judgment, state ordinances, and court fees. The credit score of the applicant may also impact the cost. State ordinances vary, as do court fees.
At a minimum, an appeal bond costs $250. The premium amount is 1% with collateral or 2% without collateral.