Short answer. Yes. Article 2057 of the Civil Code allows a creditor to demand a replacement guarantor when the original becomes insolvent. There is one exception: if you specifically required that a named individual be the guarantor and agreed to that in the contract, you may not demand a substitute.
What the law says
If the guarantor should be convicted in first instance of a crime involving dishonesty or should become insolvent, the creditor may demand another who has all the qualifications required in the preceding article.
Civil Code, Article 2057 — Replacement of a Guarantor. Read the full provision →
The right to demand a replacement guarantor
A guaranty is only as good as the person backing it. When the guarantor you accepted becomes insolvent — unable to pay their own debts — the security you thought you had disappears. Article 2057 of the Civil Code gives you a remedy: you can require the debtor to provide a new, qualified guarantor in place of the insolvent one. The same right applies if the guarantor is convicted at the trial level of a crime involving dishonesty. In both situations, the protection you bargained for has effectively failed, and the law allows you to restore it.
The replacement must meet the legal qualifications
A creditor cannot be handed just anyone as a replacement. The new guarantor must have all the qualifications required under the Civil Code — which means the person must have legal capacity to bind themselves and must have sufficient property to meet the obligation. Simply offering a family member with no assets does not satisfy the requirement. If the debtor cannot produce a genuinely qualified person, you retain your rights against the debtor directly and may take further legal steps to protect the debt.
The exception: when you agreed to a named guarantor
Article 2057 contains an important caveat. If the contract specifically required and stipulated that a particular, named person would be the guarantor, the right to demand a replacement does not apply. The logic is that you accepted the risk that this specific person might fail — you made the guaranty personal. In practice, many loan documents name the guarantor in general terms without this kind of specific stipulation, so the exception is narrower than it might seem. Review your actual agreement carefully to see whether it falls within this exception.
What to do if you are in this situation
If your guarantor has become insolvent and your agreement does not contain a named-guarantor stipulation, your next step is to formally notify the debtor of the guarantor's insolvency and demand that a qualified replacement be provided. Doing this in writing creates a clear record. If the debtor refuses or fails to produce an acceptable guarantor, the situation may give you grounds to accelerate your remedies — but the specific consequences depend on the terms of your contract. Speaking with a lawyer about the wording of your agreement and the debtor's financial position will help you decide the most effective course of action.