saving for your child’s college while on a tight budget

Posted on: 14 October 2015

You're enjoying a peaceful night's rest when all of the sudden, a friend, family member, loved one or worse, one of your adult children has called to tell you they're in jail. Realize you're not alone. According to Consumer Affairs, nearly one-third of all Americans are arrested before their twenty third birthday. If you've been asked to co-sign the suspect's bond, here is some information you need to consider first:

What Exactly Does It Mean to Co-Sign a Bond?

When you co-sign a friend or family member's bond, you become something called the "indemnitor," As the name would suggest, you become indebted to pay back the entire bond if your family member or friend doesn't fulfill their obligations to the court.

Basically, once you co-sign the bond, you become legally responsible for the suspect. It becomes your responsibility to see that the individual goes to court. If the suspect decides to leave town or worse, commits another crime while they are out on bond, you are then responsible for paying the remainder of the bond.

Depending on the state in which you live and other factors associated with the case, you will be expected to pay 10 percent of the bond upfront to the bail bondsman. Once again, if the suspect fulfills all their obligations to the court, you do not need to pay another single penny.

Due to the tremendous legal obligations that come with co-signing a bond, it is important to take into consideration the suspect's past criminal history and if they can simply be trusted. If you are worried the suspect isn't trustworthy or there is even a slim chance they will run out on their bond, think twice about putting your finances and future at risk.

Do You Even Qualify?

If you've ever applied for a loan before, chances are you weren't surprised when the bank or car dealership asked for your credit history, job history, or if you had any collateral. Applying to be a co-signer on a bond is no different. Here are a few of the considerations the bond company may keep in mind before they will allow you to become a co-signer:

• Your Credit History – Typically, the bond provider will ask for your credit history. This provides them with a good indication of your trustworthiness. If you've had credit issues in the past, you may not qualify to be a co-signer.

• Your Job History – If you're constantly jumping from one job to the next, or if you've recently started a new job, the bond company will take this into consideration, as well. A potential co-signer with a solid job history, and who makes a good living, is an ideal candidate.

• Are You Responsible – If you have had trouble with the law in the past, don't have a permanent residence, or simply don't appear responsible, the bond company may consider you too much of a risk to act as a co-signer.

• Collateral – Finally, in some cases, the bond company may ask for collateral. For example, if the suspect is a flight risk or if the bond is very large, the bond company may ask a co-signer to use their belongings, vehicle, or even their home as collateral. However, if the bond amount is small or if the suspect doesn't have a criminal history, the bond company will typically accept a signature bond, meaning that no collateral is necessary.

Co-signing a friend, family member, or loved one's bond is a huge responsibility. Don't make this choice lightly. Instead, consider the pros and cons of taking on the responsibility of your loved one's legal woes. Have a peek at this website for more information.