Petitioning Creditors Bond| Surety Bond

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Petitioning Creditors Bond

Petitioning creditor bond is a Surety bond which is issued when a petition is filed to declare a person has bankrupt or insolvent. In petitioning creditor bond, an application is given to the receiver or the marshal to take charge of the property of the bankrupt prior to hearing. The petitioner is required to obtain a petitioning creditor bond to indemnify the alleged bankrupt for the cost, expense, counsel fee and damages. This happen when the petitioner withdrawn the petition. This bond indemnifies the bankrupt for the additional expenses incurred.

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