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Payne Law Firm in Memphis, TN
Memphis-based bankruptcy law firm specializing in Chapter 7, 13, and 11 filings with 25+ years of experience. Offers free consultations and personalized attorney-led representation.
Data compiled from public sources · Rating from CreditDoc methodology
Payne Law Firm Review
Payne Law Firm is a bankruptcy legal practice founded and operated by Jerome C. Payne, who earned his Juris Doctorate in 1993 and has been admitted to practice law since that year. The firm is located in Memphis, Tennessee at 3525 Ridge Meadow Parkway and has served the local community for more than 25 years, assisting thousands of families with bankruptcy filings and debt relief.
The firm specializes in three primary bankruptcy chapters: Chapter 7 (liquidation/straight bankruptcy), Chapter 13 (wage earner bankruptcy with debt repayment plans), and Chapter 11 (business reorganization including Subchapter V for small businesses). Beyond bankruptcy filing, they offer strategic alternatives including motions to stop garnishments and levies without filing, foreclosure defense, eviction halting via Chapter 13, and car repossession prevention or recovery. Each case receives personal attention from the attorneys, with clients guided through every step of the process.
Payne Law Firm distinguishes itself through direct attorney involvement rather than paralegal-heavy case management, a commitment to assessing whether bankruptcy actually benefits each client before recommending it, and multimedia client education including a regular Facebook Live show called "Talking Law" featuring Attorney Payne. The firm transparently addresses common client concerns through detailed FAQ content covering debt discharge eligibility, asset protection, creditor notification, and realistic timelines (3-6 months typical completion).
The firm is legitimate and established, with verifiable contact information, a professional website, and transparent pricing structure (free consultations). However, consumers should note this is a legal service requiring payment for representation, and bankruptcy has serious long-term credit consequences. The website content is informational rather than aggressive in sales approach, suggesting ethical business practices.
Services & Features
Bankruptcy alternatives assessment and strategic planning
Car repossession prevention and recovery
Case management and creditor notification coordination
Chapter 11 Bankruptcy for business debt reorganization
Chapter 13 Bankruptcy filing (wage earner plans with debt repayment)
Chapter 7 Bankruptcy filing and representation (straight/liquidation bankruptcy)
Creditor harassment cessation via automatic stay
Eviction halting via Chapter 13 with landlord payment plan negotiation
Foreclosure defense and temporary relief strategies
Free initial bankruptcy consultation
Garnishment and levy prevention/relief via Motion to Set Payments
Subchapter V Chapter 11 for small business relief
Feature Checklist
Mobile App
Online Portal
Score Tracking
Credit Education
Personal Advisor
Identity Theft Protection
Pros & Cons
Pros
- 25+ years of established service in Memphis community with thousands of assisted families
- Free initial consultation with no obligation to file bankruptcy
- Personal attorney involvement—Jerome C. Payne handles cases directly rather than delegating to paralegals
- Comprehensive service range covering Chapter 7, 13, and 11 bankruptcies plus business reorganization
- Explores alternatives to bankruptcy (garnishment/levy motions) before recommending filing
- Clear communication of realistic timelines (3-6 months) and honest assessment of debt discharge eligibility
- Educational outreach through weekly Facebook Live and cable TV show to build client knowledge
Cons
- No pricing transparency on website—legal fees not disclosed, requiring direct inquiry
- Limited geographic service area (Memphis-focused), unclear if they serve outside Tennessee
- Website content incomplete—car repossession section cuts off mid-sentence, suggesting poor website maintenance
- No information about bankruptcy trustee relationships, success rates, or case outcomes
- Heavy reliance on personal brand (Jerome C. Payne) creates dependency on single attorney availability
Rating Breakdown
Value 5.0
Effectiveness 3.5
Customer Service 3.7
Transparency 3.5
Ease of Use 3.9
Frequently Asked Questions
Is Payne Law Firm legitimate?
Yes. Payne Law Firm is a registered company, headquartered in 3525 Ridge Meadow Pkwy Ste 100, Memphis, TN 38115.
Quick Facts
- Headquarters
- 3525 Ridge Meadow Pkwy Ste 100, Memphis, TN 38115
- BBB Accredited
- No
- Starting Price
- Contact provider
- Setup Fee
- None
- Money-Back Guarantee
- No
CreditDoc Diagnosis
Doctor's Verdict on Payne Law Firm
Payne Law Firm is best for Memphis-area residents and small business owners needing legitimate bankruptcy representation with personal attorney involvement and honest pre-filing assessment. The critical caveat is that bankruptcy is a legal proceeding with severe 7-10 year credit report consequences; this firm should only be engaged after exploring all alternatives, and consumers must understand they are paying for legal services, not quick debt elimination.
Best For
- Memphis-area residents facing Chapter 7 liquidation with unsecured debts exceeding assets
- Wage earners seeking Chapter 13 repayment plans to retain property (home, vehicle)
- Small business owners needing Chapter 11 or Subchapter V reorganization without liquidation
- Consumers with garnishments, levies, foreclosure threats, or eviction notices needing immediate legal intervention
Updated 2026-04-29
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Read guide →Financial Terms Explained (14 terms)
New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
How Loans Work
Default — Loan Default
When you fail to repay a loan according to the agreed terms — usually after 90-180 days of missed payments. It's the point where the lender gives up on collecting normally.
Why it matters
Default triggers severe consequences: credit score drops 100+ points, the debt may be sent to collections, you could be sued, and your wages or assets could be seized.
Example
You miss 4 consecutive car payments. The lender declares your loan in default, repossesses your car, sells it at auction for $8,000, and you still owe the remaining $5,000 (called a deficiency balance).
Legal Terms
CFPB — Consumer Financial Protection Bureau
A federal agency created in 2010 to protect consumers from unfair financial practices. They write rules, supervise financial companies, and handle consumer complaints.
Why it matters
The CFPB is your most powerful ally against predatory lenders. Filing a complaint with them gets a response from the company within 15 days — companies take CFPB complaints seriously.
Example
A debt collector calls your workplace after you told them to stop. You file a CFPB complaint online. Within 15 days, the collection agency responds and agrees to stop. The CFPB tracks complaint patterns across all companies.
FDCPA — Fair Debt Collection Practices Act
A federal law that limits what debt collectors can do. They can't call before 8am or after 9pm, can't harass you, can't lie, and must stop contacting you if you request in writing.
Why it matters
Knowing your FDCPA rights stops abusive collection tactics. If a collector violates the law, you can sue for up to $1,000 per violation plus attorney fees.
Example
A collector calls your workplace 3 times after you told them not to. That's 3 FDCPA violations. You hire a consumer attorney (free — they get paid by the collector). The collector settles for $3,000.
Garnishment — Wage Garnishment
A court order that requires your employer to withhold part of your paycheck and send it directly to a creditor. Usually happens after a creditor sues you and wins a judgment.
Why it matters
Federal law limits garnishment to 25% of disposable income. Some states have lower limits. Student loans and taxes can be garnished without a court order.
Example
You owe $8,000 on a defaulted credit card. The bank sues, gets a judgment, and garnishes your wages. On a $3,000/month net paycheck, they take $750/month until the debt is paid.
Statute of Limitations — Statute of Limitations (Debt)
A time limit (typically 3-6 years, varies by state) after which a creditor can no longer sue you to collect a debt. The debt still exists, but they lose the legal power to force payment.
Why it matters
Knowing your state's statute of limitations prevents you from being tricked into paying debts that are legally uncollectable. Beware: making a payment can restart the clock.
Example
You have a $3,000 credit card debt from 2019. Your state has a 4-year statute of limitations. In 2024, a collector calls demanding payment. The statute has expired — they cannot sue you.
Debt & Recovery
Chapter 13 Bankruptcy — Chapter 13 Bankruptcy (Reorganization)
A type of bankruptcy where you keep your assets but follow a court-approved 3-5 year repayment plan to pay back some or all of your debts. Stays on credit for 7 years.
Why it matters
Chapter 13 is better than Chapter 7 if you have a home or assets you want to keep. It can stop foreclosure and let you catch up on mortgage payments over 3-5 years.
Example
You're 3 months behind on your mortgage and have $30,000 in credit card debt. Chapter 13 stops foreclosure and puts you on a 5-year plan: you pay $600/month to catch up on the mortgage and pay 40% of the credit card debt.
Chapter 7 Bankruptcy — Chapter 7 Bankruptcy (Liquidation)
A type of bankruptcy that wipes out most unsecured debts (credit cards, medical bills) by liquidating non-exempt assets. It stays on your credit for 10 years.
Why it matters
Chapter 7 gives you a fresh start but at a steep cost: 10 years on your credit, difficulty getting loans, and you may lose assets. Income must be below your state's median to qualify.
Example
You have $45,000 in credit card debt and earn $35,000/year. Chapter 7 erases the debt. You keep exempt property (basic car, household items). Your score drops to ~500 but you're debt-free.
Charge-Off
When a creditor declares your debt a loss after 180 days of nonpayment and removes it from their books. But you still owe the money — they just stop expecting to collect it themselves.
Why it matters
A charge-off is one of the most damaging entries on your credit report and stays for 7 years. The debt is usually sold to a collection agency who will pursue you for it.
Example
You stop paying your $4,000 credit card. After 180 days, the bank charges it off and sells the debt to a collector for $800. The collector now contacts you demanding the full $4,000 (they profit from what they collect above $800).
Collections — Debt Collections
When an unpaid debt is transferred or sold to a third-party collection agency that specializes in recovering the money. Collection accounts appear on your credit report for 7 years.
Why it matters
Even a $50 collection account can drop your score 50-100 points. Some newer FICO models (FICO 9) ignore paid collections, but many lenders still use older models.
Example
An old $200 gym bill goes to collections. It appears on all 3 credit reports and drops your 720 score to 640. Paying it helps with newer scoring models but under FICO 8 (still widely used), a paid collection still hurts.
Debt Consolidation
Combining multiple debts into one single loan with one monthly payment, ideally at a lower interest rate. It simplifies repayment and can reduce total interest.
Why it matters
Consolidation works best when you get a lower rate than your existing debts. But it doesn't reduce what you owe — and extending the term can mean paying more total interest.
Example
You have: $5,000 at 22% (credit card), $3,000 at 18% (store card), $2,000 at 25% (payday loan). A $10,000 consolidation loan at 11% saves you ~$2,100 in interest over 3 years.
Debt Settlement — Debt Settlement / Negotiation
Negotiating with creditors to accept less than the full amount you owe — typically 40-60 cents on the dollar. Usually done after you've already fallen behind on payments.
Why it matters
Settlement can save thousands, but it severely damages your credit (settled accounts show for 7 years) and the IRS may tax the forgiven amount as income.
Example
You owe $15,000 on a credit card and negotiate a settlement of $7,500 (50%). You save $7,500 but: your credit drops 100+ points, the account shows 'settled' for 7 years, and you may owe taxes on the $7,500 forgiven.
DTI Ratio — Debt-to-Income Ratio
The percentage of your monthly gross income that goes toward paying debts. Lenders use it to judge whether you can afford another loan payment.
Why it matters
Most lenders want DTI below 36% for personal loans and below 43% for mortgages. Above that, you're considered overextended and likely to be denied.
Example
You earn $5,000/month gross. Your debts: $1,200 mortgage + $300 car + $200 student loans = $1,700/month. DTI = 34%. A new $400/month loan would push you to 42% — risky for lenders.
Judgment — Court Judgment (Debt)
A court ruling that says you legally owe a specific amount to a creditor. It gives the creditor power to garnish wages, freeze bank accounts, or place liens on your property.
Why it matters
Judgments are enforceable for 10-20 years (varies by state) and can be renewed. They give creditors far more collection power than a simple unpaid debt.
Example
A credit card company sues you for $8,000 and wins a judgment. They can now garnish 25% of your paycheck ($750/month on a $3,000 net salary) and freeze your bank account.
Want to learn more? Read our Financial Wellness Guides for in-depth explanations and practical advice.
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