Petitioning Creditor Bond

When a petition of bankruptcy is filed declaring a person is insolvent, an application is given to a marshal to give said person permission to take control of the bankrupt party's property(s) prior to the court hearing.

A Petitioning Creditor Bond indemnifies (binds said person to agree to hold someone harmless, meaning that they will not take legal action against this person, in the event of a loss) the alleged insolvent for costs, damages, court fees, and any additional costs that may build up during a court case.

A Petitioning Creditor Bond is filed once the petitioner for bankruptcy withdraws the petition.