How Do Appeal Bonds Work?
What is an appeal bond?
An appeal bond is a process within the legal system in which the decision of a financial judgment is appealed. Before the case can be appealed, the party that has been deemed to owe the judgment must put up a bond to cover both the cost of the appeal and the original full cost of the judgment.
The purpose of an appeal bond
An appeal bond guarantees that, if the appeal of the original judgment fails, the money to pay that judgment is guaranteed. This process discourages any parties involved from filing for an appeal to stall the court proceedings or waste the court's time.
How satisfy an appeal bond
A bond can be satisfied in two ways. The first is showing proof that you (or someone who will speak for you) has the necessary assets to pay the bond. The second way is for the party to put down a cash deposit equal to the cost of the bond.
Whatever method is used to satisfy the bond, the party, whether it be the principal or a third party, becomes liable for the bond if the appeal process fails.
