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Bond #230 • Debtor Protection • Court Approved

Debtor Bonds for Protection Arrangements

Debtors remaining in possession during bankruptcy or reorganization proceedings need bonds to protect creditors. Court-approved arrangements ensuring creditor protection while allowing continued business operations.

0.5%+
Starting Rate
24hr
Approval
$25K+
Typical Amount
Court
Required
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When Debtor Bonds Are Required

Protect creditors while maintaining business operations during reorganization

Debtor-in-Possession

Debtors remaining in control of business operations during Chapter 11 reorganization

Creditor Protection

Bonds ensuring creditors are protected while debtors continue business operations

Reorganization Plans

Court-approved arrangements allowing continued operations during plan development

How to Get Your Debtor Bond

Fast bonding for court-approved operations

1

Submit Application

Provide court order and business asset details

2

Financial Review

Assessment of business viability and creditor exposure

3

Receive Quote

Competitive pricing for debtor-in-possession bonds

4

Bond Issued

File with court to continue operations

Part of Fiduciary Bond Family

View All Fiduciary Bonds
Bank Fiduciary
Financial institutions
Bankruptcy Trustees
Chapter 7/11/13
Court-Appointed
Judicial appointments
Receiver/Trustee
Asset receivers

Frequently Asked Questions

Common questions about debtor bonds

What is a debtor bond?
A debtor bond protects creditors when debtors remain in possession of their business during bankruptcy or reorganization proceedings. It ensures that if the debtor mismanages assets or fails to comply with court orders, creditors have financial recourse.
How much does a debtor bond cost?
Costs typically range from 0.5-3% of the bond amount annually for qualified applicants. Rates depend on the bond amount, applicant credit, business financial strength, and the nature of the reorganization.
Who needs a debtor bond?
Courts typically require these bonds for debtors remaining in possession during Chapter 11 reorganization or other court-approved arrangements to protect creditor interests and ensure proper asset management.
How long does it take to get approved?
Approval times vary. Smaller bonds under $100,000 with good credit can be approved within 1-3 business days. Larger bonds requiring more documentation may take 5-10 business days.
Can I get a bond with challenged credit?
Yes, bonds are available for applicants with various credit profiles. However, debtor situations often involve financial challenges, so additional collateral or higher rates may be required.

Official Debtor Bond Resources

U.S. Department of Treasury - Surety Bond Program →

Official list of Treasury-certified surety companies authorized to write federal bonds

U.S. Courts - Bankruptcy Court Information →

Official federal court resources for debtor-in-possession requirements

Written by BuySuretyBonds.com
Licensed surety bond agency operating nationwide with direct integrations to Treasury-certified surety carriers. Our platform enables instant approval for license and notary bonds, with 24-48 hour underwriting for commercial bonds. All content is researched from official state and federal sources (.gov) and reviewed by licensed insurance professionals.
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