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New Jersey is another state from which many people call with questions about asset protection.  Rightly so, because New Jersey does not offer any homestead exemption, which means that anyone with unprotected assets is completely at risk of losing EVERYTHING, including the home in which they live.  Not a good scenario.

New Jersey Asset Protection

The saving grace for residents of New Jersey is the protection offered to various business entities.  Before you continue reading this article, please make sure you have a full understanding of the difference between inside and outside liability.  In short, inside liabilities are those incurred by the business entity itself.  For example, if a person operates a limited liability company (an “LLC”) and the LLC itself leases office space, then the lease is an inside liability.  Only the LLC is responsible for making the monthly payments or in the event of default.

Outside liabilities, on the other hand, are those incurred by members of an LLC or partners in a limited partnership.  For example, if John Doe is a member in an LLC and is at fault in a traffic accident that occurs while he is going to the beach with his family one weekend, then only John is responsible for the damages caused by the accident, not the LLC in which he is a member.

Charging Order Protection In New Jersey

The great thing about New Jersey is that it provides charging order protection for both LLCs and limited partnerships.  A charging order is a tool that judges use to help creditors collect money after a creditor is successful in court.  Basically, a charging order allows a creditor to collect income allocated to a member of an LLC or a partner in a limited partnership (“LP”).  That may sound bad, but it is better than the alternative.  Some states allow creditors to force a dissolution of an LLC or LP.  Others allows for a foreclose of LLC or LP interests.

While New Jersey asset protection laws do not provide the most protection in terms of exempting assets from the claims of creditors, it is a good state in which to organize certain forms of business entities.  Contact an asset protection attorney today to learn how you can can take full advantage of asset protection laws and form a comprehensive asset protection plan.

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Pashmina Lalchandani

CEO & Co-Founder, Bar & Cocoa / Owner, Flow Simple
December 9, 2010, Douglass was a client of Pashmina’s

I’ve known Doug in many contexts, as a friend, as a client and as a business partner and he impresses me on all levels. He’s dependable, smart, generous and I wouldn’t hesitate recommending him and his law firm to anyone.
He’s the best and most ethical lawyers providing asset protection with rock solid strategies to give you peace of mind about your wealth. Straight forward, and straight talk. Doug is exactly the lawyer I want on my side. If I send someone to Doug, I know they’ll thank me for it!

Social & Solar Entrepreneur, Pan Afrikan Theorist, Translator/Interpreter,
Founder & Visionary Leader @ Afrikanpride.
March 12, 2011, Marlon E. D. J. worked with Douglass but at different companies

Doug is one of the most powerful thinker i have came across. During the short time that i have known Doug he has been a great source of inspiration. He has a simplistic yet effective and accurate way to analyze anything you bring to his attention, and then by asking you key questions he gets you to see the light at the end of the tunnel. Besides being extremely bright, he is a genuine and caring individual which is why I feel fortunate to know him. I can say without a doubt that he his the person you would want to talk to if you were in need of a person with his expertise.
Most of the lawyers out there will probably meet your needs, but if you are looking for someone to exceed your expectations and give you that wow factor, look no more he is the person for the job.

Patricia Salter

Associate Dentist at Smileology
December 1, 2010, Patricia was a client of Douglass’

I have been a client of Douglas Lodmell’s since 2001. My main concern was asset protection in this litigious society. I can sleep alot better at night knowing I have the instruments in place to protect the fruits of my labor, and that they will not end up in the hands of a slick trial attorney.

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