States across the country have enacted laws to help people protect their assets in a bankruptcy. There are many citizens who are not aware of these laws and how they can help. No matter how much you have been able to save, it is prudent to consult an attorney to learn the asset protection laws in your state. This article will discuss the laws of New Jersey.
New Jersey has exempted certain assets from bankruptcy proceedings. Proceeds from life insurance are exempt from creditors if the life insurance says so. This applies only to the beneficiaries of a life insurance plan. Policies of group life and health insurance are also exempt. Annuities are also somewhat exempt. Proceeds from the benefits, rights, privileges, and options from an annuity will be exempt but only up to $500 a month.
There are additional rules for people who are partners in a business. If a creditor is seeking to collect from a business partner the only remedy available is a charging order. This order allows a creditor to satisfy a judgment out of a debtor’s transferable interest in a partnership. While the creditor will receive money from the partnership, the creditor cannot interfere with management of the partnership or try to dissolve it. The creditor also cannot seek a foreclosure sale on his or her interest.
Outside of bankruptcy, an attorney is still very useful in asset management. Most lawyers are not qualified to be financial advisors. However, attorneys well versed in tax law can advise clients on what kinds of investments will result in the least amount of taxable income. There are many different kinds of investments, ranging from IRAs to annuities, and each has its own advantages and disadvantages from a tax perspective.
Regardless of your situation, you should always speak to an attorney for advice on how to best protect your assets. You can contact Stone Law at 732-444-6303 or leave us a message on our website.