Will BK effect current Bond?

[edwin]

If we file for bankruptcy, will it effect our current bond? Will it be removed? Will the price go up?

[Admin]

Edwin,

Credit is a major factor when it comes to bond underwriting. With that said, your bond renewal will only be effected if the surety pulls credit prior to your bond's expiration. Some do, while others don't.

If they do pull credit, you can be sure they will drop you (unless you are already in a high risk program). You would then have to place the bond in a high risk program, likely around a 15% rate.


If you need to replace your bond, we can offer you a free quote at: JW Surety Bonds - Commercial Bond Applications