In simple terms, appeal bonds are a form of surety bonds that helps to protect the opposing party in an appeal case. Appeal bonds are a form of guarantee from the defendant. If the defendant loses the appeal, the appeal bond will be able to cover all the court costs and fees.

If you’re planning to appeal a court judgment, you must be informed about filing an appeal bond. But before that, you must understand why appeal bonds are important and how an appeal bond can be advantageous for you.

That’s why we’ve listed some key reasons that will help you consider having an appeal bond while appealing against a court decision.

Appealing Without a Bond Can Be Expensive

Consider an Appeal Bond

First of all, you’re not required to have an appeal bond if you want to appeal against a judgment. But if you go forward without an appeal bond, it might cost you way more. You have to pay a significant amount of money up front to start the appeal.

For many defendants, the amount they have to pay for an appeal is high, so appeal bonds can be a viable option for defendants.

Appeal Bonds can ensure that you can proceed with the appeal smoothly without paying a large sum of money in the beginning.

Appeal Bonds Can Reduce the Risk Factors

If you appeal without an appeal bond, you might face several risks.

For instance, if you win the appeal, you have to file a separate action to recover the money you won from the plaintiff.

It can often be a challenging task. The plaintiff might not be willing to give you the money. In that case, you must file a lawsuit against that party, win the lawsuit, and then you might get the money.

The plaintiff could also take steps to make himself โ€œjudgment-proofโ€. For example, he can hide his assets or spend his money.

In this scenario, it will become very difficult for you to get your money back. An appeal bond can remove all the hassle and risks. It can ensure that you get the full amount of money you won if you win the appeal.

A Sign of Good Faith

When you’re appealing against a judgment, you must keep a good image in front of the court. An appeal bond can help you maintain that good image.

An appeal bond can ensure the court that all the required fees and costs will be paid if you lose. It also makes sure to give the winning amount if he wins.

So you can make a good impression in front of the court by posting an appeal bond. This might also help you win the appeal.

Besides, having a viable case also increases your chances of winning the appeal.

Cost The Best Lawyers

Before you go for an appeal bond, you must know the price of appeal bonds with other necessary information. Usually, bonds are much larger than the judgment amount. You also have to remember that appeal bonds cover other expenses such as court and attorney fees.

The bond fee varies depending on your state and region. Usually, the bond fee is 1 to 2 percent of the entire bond amount. Although the bond premium can be high, the advantages are worth the price.

You can reduce most of the costs by choosing a good lawyer.

Prevents Frivolous Appeals

In appeal cases, a common scenario is a plaintiff filing frivolous appeals to their advantage. Frivolous appeals are a lawsuit or motions used to harass and embarrass the opposition. These appeals have little to no arguable basis.

Frivolous Appeals

Plaintiff can often use these frivolous appeals to delay the judgment. In these cases, an appeal bond can cover all the additional expenses of a lengthy judgment.

Later on, the appeal bond will ensure the plaintiff pays the full money, including the interest and other expenses. You will be affected by the delay, and you can be free from all these unnecessary hassles.

Collaterals of Appeal Bonds

Appeals bonds include a lot of money. For security purposes, there should be collateral to guarantee the bond amount. The collateral should be 100% equivalent to the total bond amount.

There are four types of collateral including cash, letters of credit, marketable securities, and real estate. All of these collaterals can significantly help you in your appeal.

Benefits of Cash as Collateral

Cash or liquid money is one of the most common forms of securing an appeal bond. Cash can be beneficial for you in many ways. For example, many sureties will pay interest on your cash deposits.

These interest rates are often equal to the bond premium. This means you can get the same interest as the bond premium. So your cost of paying the bond premium will be nullified.

Another benefit of cash is if you win the appeal, some court will allow you to recover the cost of your appeal. In that way, you might be able to reduce most of your costs in the appeal.

Benefits of Letter of Credit

A letter of credit is provided by a bank for a certain amount of money. It promises that the bank will pay the amount when it’s demanded. It’s also a popular form of collateral.

having an appeal bond

If you have a good relationship with a bank and good transaction history, a letter of credit will be perfect collateral for you. You will get the letter of credit within a short amount of time and then you can use it to secure collateral.


If you think you have a viable case, you must appeal the judgment. A bond appeal can significantly help you in that process.

An appeal bond is something that not only secures your assets but also protects you from frivolous appeals. The right amount of appeal bond can reduce most of your hassles regarding appealing.

The above mention reasons should be enough for you to consider posting an appeal bond for your appeal to the court.

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