No payment

[Redbull]

I'm just curious - has a surety company ever attempted to collect funds (after a claim has been filed) from a client, and the client fails to pay? Would his or her house be taken away? What criminal convictions could a person possibly face if they fail to pay?

[marietta68]

Originally Posted by Redbull

I'm just curious - has a surety company ever attempted to collect funds (after a claim has been filed) from a client, and the client fails to pay? Would his or her house be taken away? What criminal convictions could a person possibly face if they fail to pay?

Of course, indemnification isn't always possible; bankruptcy is a perfect example of a situation where the bond company might not be able to recover its expenses on behalf of one of its principals. However, this is not a criminal offense on its face. Some states exclude personal residences from bankruptcy proceedings, but others do not, and so yes, homes are required to be sold to satisfy creditors' demands. Rest assured that by the time this happened, the bond company wouldn't be the only one standing in line, waiting to be paid.