Does a Family Limited Partnership provide asset protection?

Yes, a creditor of a partner is not entitled to any of the assets that are in the name of the partnership because the debt that you have is yours personally and not a debt of the partnership. A creditor is generally only entitled to what is known as a "charging order" against your partnership interest which means that the creditor may only receive the distributions that your receive as a general or limited partner. In circumstances where there are claims against you it is common for distributions from the partnership to you to be reduced. You may, however, still receive assets from the partnership during such time in the form of loans or administration fees which may not be classified as distributions which a creditor may take.