# Maryland Home Improvement Commission - Surety Bond



## suttonpaint (Apr 16, 2012)

Good afternoon all -- great website here! I am trying to get my surety bond for my MHIC license and am having a tough time. I've declared bankruptcy 2 years ago and currently have no credit, but also no debts. I was declined a bond at 1 company and another company wanted $4650 for a $20K bond and they wanted my wife to sign it too. She has no problem signing, but we want to keep my business and our personal interests seperated.

Anyone have any suggestions? ideas? help?

Thanks in advance.


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## Timo (Nov 22, 2006)

suttonpaint said:


> Good afternoon all -- great website here! I am trying to get my surety bond for my MHIC license and am having a tough time. I've declared bankruptcy 2 years ago and currently have no credit, but also no debts. I was declined a bond at 1 company and another company wanted $4650 for a $20K bond and they wanted my wife to sign it too. She has no problem signing, but we want to keep my business and our personal interests seperated.
> 
> Anyone have any suggestions? ideas? help?
> 
> Thanks in advance.


If you read and follow the intent of the Commission, they want your personal worth tied to your license. They don't care how much equity you hold in this or other companies, they want 20k of your own blood on the line.

You do have the option in Maryland to have someone else post up a promissory note to the board on your behalf.


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## suttonpaint (Apr 16, 2012)

Thanks for the response...really do not have anyone in a position that would do that for me. It's a shame a good guy trying to do the right thing (paying taxes, etc. and being legit) is treated like this. I understand the intent of the commission and why it's required, but it's just unfair to the business owner too. If I had $5K for a bond, then I would have assets or cash in the bank already and wouldn't need to pay the $5K to get the bond, but could pay a more reasonable price and get bonded.


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## cwatbay (Mar 16, 2010)

Welcome to the world of bonds. Bonds are like loans, they want to make sure you can pay before they are willing to invest in you. 

A lot of contractors out here in CA got caught in the housing bust and ended up in bankruptcy and bad credit. Due to so many defaulting contractors and the loss of competition in the bond industry, the last few firms willing to issue bonds decided to tie bond rates with your credit rating. 

Although I may not agree, I can see their point. Bonding is a business, it is not there to lose money. Regardless of your non-liquid assets, the only guideline as to your "credit worthiness" is your ability to pay debts and remain solvent.


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## Theron (Feb 7, 2012)

That's a great idea ! Make sure you keep them separate.if your wife isn't attached to your business don't let her sign and if she is you sill keep business & personal separated.


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## Theron (Feb 7, 2012)

Your bond is high because of your credit history,that's the way they play that game.The only way I see it is to get that score up first then go legit.is hard but fair.


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## suttonpaint (Apr 16, 2012)

thanks, my wife and i want to keep stuff seperate

if i pay the $5k for the bond -- why does she have to sign, geez isn't me paying $5K enough??? my name isn't even on our house so there's really no benefit to her signing...


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## Gary H (Dec 10, 2008)

They want to get all they can. If she is married to you, then I believe she is tied to all your business debt and income. So if you fault, then she is next in line.


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## tedanderson (May 19, 2010)

Try shopping around some more. I don't know where you are in Maryland but there is a company in Upper Marlboro that did my bond. PM me if you want their info.


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