Petitioning Creditor Surety Bond

A Petitioning Creditor’s Surety Bond is a bond used in bankruptcy court. The bond is needed when a party files a petition to have someone declared bankrupt. The court must appoint an officer to take the property of the bankrupt individual until the case has been judged. The party making the petition to have the individual declared bankrupt must post a bond to indemnify the individual against any costs or fees they might incur by the seizure of their property if the court decides not to declare them as bankrupt.