How can a bail bond company collect payment from an indemnitor?

Prepare for the Iowa Surety Bond Test. Study with flashcards and multiple-choice questions, each question has hints and explanations. Boost your exam readiness!

A bail bond company has various legal options to collect payment from an indemnitor, and filing a lawsuit is one of those options. When an indemnitor agrees to back a bail bond, they take on financial responsibility for the bond amount if the defendant does not appear in court. If the indemnitor fails to pay the owed amount after a bond has been executed, the bail bond company may choose to pursue legal action to recover the unpaid debt.

This approach allows the bail bond company to formally address the financial obligation in a court of law, providing a legal framework to enforce payment. Other methods like withholding services, negotiating bond amounts, or canceling agreements are not necessarily enforceable means of collection and may not provide the same level of legal recourse as filing a lawsuit. By opting for a lawsuit, the bail bond company takes a clear legal stance to ensure they are compensated for the risks they assumed in providing the bail bond.

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