What if the guarantee company goes bankrupt?

Legal analysis: When a guarantee company is dissolved or cancelled, the measures taken by the state are similar to those taken by ordinary companies. Before the guarantee liability is lifted, the shareholders of the company shall not distribute the company's property or obtain any benefits from the company. The guarantee company goes bankrupt, and the staff who go through the formalities have no legal responsibility. Because the guarantee company is the guarantor in the guarantee contract related to the guarantee business, the staff who go through the formalities are not the guarantor in the guarantee contract.

Legal basis: Interim Measures for the Administration of Financing Guarantee Companies

Article 16 Where a financing guarantee company is dissolved or cancelled, it shall set up a liquidation group to carry out liquidation according to law and repay relevant debts in time according to the debt settlement plan. The supervisory authority supervises its liquidation process. Before the guarantee liability is lifted, the shareholders of the company shall not distribute the company's property or obtain any benefits from the company.

Article 17 If a financing guarantee company is unable to pay off its due debts, and its assets are insufficient to pay off all debts or obviously lack solvency, it shall go bankrupt according to law.