[Direct answer]In the Beijing area, whether the guarantors can recover from each other depends on the specific circumstances. According to Article 700 of the Civil Code of the People's Republic of China (effective January 1, 2021), after the guarantor assumes the guarantee liability, unless otherwise agreed by the parties, the guarantor has the right to recover from the debtor within the scope of his liability, and enjoys the rights of the creditor against the debtor, but shall not harm the creditor's interests. This article only grants the guarantor the right to recover from the debtor. Regarding the guarantors themselves, under the current rules, several guarantors cannot recover from each other in principle, unless the parties expressly agree on the sharing ratio or constitute joint and several guarantees and agree on internal shares. The specific sharing shall be subject to the current effective laws, regulations, and judicial rulings.

I. Problem Background and Typical Scenarios

Such questions often arise in several situations: first, when multiple guarantors sign for the same loan and one of them is pursued for repayment and wants to apportion the amount among the other guarantors; second, in joint and several guarantees, the creditor only seeks full repayment from one of the guarantors; third, when the guarantee contract stipulates "proportional sharing" but the proportion is unclear in practice; fourth, in mixed guarantees, whether the guarantor can seek recourse from the mortgagor after repayment; fifth, internal recourse between guarantors when a company has multiple guarantors for external guarantees. When handling similar cases in the Beijing area, the court usually first reviews the provisions of the guarantee contract and the guarantee method, and then determines the scope of internal recourse.

II. Key points of contention

First, does Article 700 of the Civil Code support mutual recourse between guarantors? The provision only refers to the debtor. Second, there is controversy over whether the internal shares of joint and several guarantees can be apportioned if there is no agreement. Third, the rules for guarantors to seek recourse from the collateral guarantors in mixed guarantees. Fourth, the reduction of the debtor's liability when the creditor waives some guarantors. Fifth, whether the scope of recourse includes interest and fees. Sixth, the principle of contractual priority applies, and the parties shall follow their own agreements if they have made other arrangements. The specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings. For related contract reviews, please refer to the relevant materials.Special services and other casesColumn; you can refer to it when conducting business operationsCreditor's rights and debts, and enforcement casesColumn.

III. Professional analysis by Henglue Lawyers

From the practical experience of lawyers handled by our firm, the pain point of internal recourse by guarantors is the "lack of agreement". A common situation is that several guarantors only sign at the end of the contract without agreeing on the sharing ratio, making it difficult for the party making the repayment to apportion the amount to others afterwards. Lawyers handled by our firm advise that the Civil Code has clearly stipulated that guarantors may recover from the debtors after making repayments, but mutual recourse must have a contractual basis or clearly constitute joint and several guarantees with agreed shares. Otherwise, the court will generally not support it. It is recommended to specify the internal sharing ratio and recourse mechanism when signing the guarantee contract to avoid "shouldering others' debts" after making repayments. In the event of disputes, it is necessary to organize the contract and repayment vouchers as soon as possible, and let professional lawyers determine the recourse path.

IV. Practical suggestions and legal basis

Action suggestions: First, check whether the guarantee contract stipulates the proportion of liability sharing and the right of recourse among the guarantors. The review of related contracts can be referred to for reference.Business and contract disputes in enterprisesFirst, the column; second, after the compensation, timely fix the payment vouchers and the creditor's confirmation and calculation details; third, recover the debt from the debtor and keep the claim records; fourth, if claiming internal recovery, it is necessary to provide evidence of the basis for the agreed share or joint and several guarantee; fifth, clarify the order of repayment between the guarantee and the physical guarantee in mixed guarantees. In terms of legal basis, Article 700 of the Civil Code of the People's Republic of China stipulates the rules for the guarantor to recover the debt from the debtor and assume the creditor's rights, and the Interpretation of the Supreme People's Court on the Application of the Civil Code of the People's Republic of China Concerning the Guarantee System specifies the internal relationship of joint guarantee. Specifically, the current effective judicial interpretations and judicial judgments shall prevail.

5. Henglue Law Firm's Reminder

Risk Warning: First, Article 700 of the Civil Code only supports the recovery of compensation from the debtor. Mutual recovery of compensation requires a contract or agreement as a basis; Second, if the proportion of sharing is not stipulated, it is often difficult for the party making compensation to apportion it to others; Third, joint and several guarantees do not necessarily mean that internal recovery of compensation is allowed. It still depends on the agreement; Fourth, after making compensation, the party should promptly claim from the debtor to avoid the risk of statute of limitations. It is recommended to stipulate internal recovery of compensation clauses when signing a guarantee contract, and to consult a professional lawyer to evaluate the recovery path in the event of making compensation. For related legal services, please refer to the following content:Creditor's rights and debts, and enforcement casesColumn.

VI. Frequently Asked Questions

Q1: Can a guarantor recover the money from other guarantors after repaying the loan on behalf of the borrower?

Generally, it is not possible to seek recourse from the guarantors. According to Article 700 of the Civil Code, the guarantor has the right to seek recourse from the debtor after making a repayment, but this article does not grant the guarantors the right to seek recourse from each other. Unless the guarantee contract clearly stipulates the proportion of repayment among the guarantors, or constitutes a joint and several guarantee with an internal share agreement, it is difficult for the repaying party to apportion the repayment to other guarantors. The outcome depends on the contract provisions and the guarantee method.

Q2: What evidence do I need to prepare to claim reimbursement from the guarantor?

The following items should be prepared: the guarantee contract, including the guarantee method, period, and whether a sharing ratio has been agreed upon; proof of compensation payments, such as bank statements and receipts; settlement or confirmation documents issued by the creditor; the main debt contract and performance status; if claiming internal recourse, additional evidence of joint and several guarantees and shareholding agreements; and collection records used to recover the debt from the debtor. The evidence is used to prove the facts of compensation and the basis for recourse.

Q3: How much does it cost to hire a lawyer for the guarantor to seek compensation?

The attorney's fees are negotiated based on the subject matter and complexity of the case, and there is no uniform standard. If the case proceeds to litigation, the fees are paid in stages according to the amount of the claim, and the portion of the successful claim is shared proportionally. The cost of simply reviewing the guarantee contract and issuing a recovery plan is manageable, but the cost of large-scale compensation litigation increases with the amount of the claim. It is recommended to first consult about the contractual provisions and compensation vouchers before providing a quote.

Q4: How long does it usually take to resolve a guarantor's recourse dispute?

The first-instance ordinary procedure for recourse litigation generally does not exceed six months, and the second-instance procedure takes about three months; if the facts are clear and the evidence is complete, the case can be settled through mediation more quickly. The key is to fix the compensation vouchers and contractual agreements as soon as possible to avoid the debtor transferring his/her property or the statute of limitations expiring. It is recommended to initiate recourse against the debtor immediately after the compensation, and if necessary, entrust a lawyer to advance the internal apportionment claim simultaneously.

Q5: How can multiple guarantors avoid being held liable for others' debts?

The first step is to clarify the proportion of liability sharing and the internal recourse mechanism among all guarantors when signing the guarantee contract; the second step is to agree on the share of joint and several guarantees to avoid vague expressions of "equal sharing"; the third step is to evaluate the feasibility of recovering the debt from the debtor and other guarantors before making compensation; the fourth step is that if the creditor only requires one person to make repayment, he/she can claim a defense according to the agreed proportion; the fifth step is to consult a professional lawyer as soon as possible in case of disputes. For enterprise commercial contracts, you can refer to the relevant provisions of the Contract Law of the People's Republic of China.Business and contract disputes in enterprisesColumn.

The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudication guidelines in other regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is provided for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.