diff --git a/src/engine/net/client/handlers/BreakFealtyHandler.java b/src/engine/net/client/handlers/BreakFealtyHandler.java
index ce83e9f4..787106c4 100644
--- a/src/engine/net/client/handlers/BreakFealtyHandler.java
+++ b/src/engine/net/client/handlers/BreakFealtyHandler.java
@@ -77,19 +77,30 @@ public class BreakFealtyHandler extends AbstractClientMsgHandler {
 
             switch (guild.getGuildState()) {
                 case Sworn:
-                    guild.setNation(null);
+                    guild.setNation(Guild.getErrantNation());
                     GuildManager.updateAllGuildTags(guild);
                     GuildManager.updateAllGuildBinds(guild, null);
+                    guild.setGuildState(mbEnums.GuildState.Errant);
                     break;
                 case Province:
+                case Protectorate:
                     guild.setNation(guild);
                     GuildManager.updateAllGuildTags(guild);
                     GuildManager.updateAllGuildBinds(guild, guild.getOwnedCity());
+
+                    boolean isNation = false;
+
+                    for (Guild subGuild : guild.getSubGuildList())
+                        if (subGuild.getOwnedCity() != null)
+                            isNation = true;
+
+                    if (isNation)
+                        guild.setGuildState(mbEnums.GuildState.Nation);
+                    else
+                        guild.setGuildState(mbEnums.GuildState.Sovereign);
                     break;
             }
 
-            guild.downgradeGuildState();
-
             SendGuildEntryMsg msg = new SendGuildEntryMsg(player);
             dispatch = Dispatch.borrow(player, msg);
             DispatchManager.dispatchMsgDispatch(dispatch, mbEnums.DispatchChannel.SECONDARY);