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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
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 listed 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.
This is state-level context for Bankruptcy Services consumers in Memphis, TN. It does not confirm that Payne Law Firm or this specific location is licensed.
State regulator
Tennessee Department of Financial Institutions
Consumer protection
Relevant law: Tennessee Credit Services Businesses Act (Tenn. Code Ann. § 47-18-1001 to 47-18-1012)
Registration: Required with Tennessee Department of Commerce and Insurance, Division of Regulatory Boards
Upfront fees: Listed as prohibited in the current CreditDoc state summary
Source: CreditDoc state-law summary and listed public regulator resources. Verify licensing directly with the listed state regulator before relying on a provider.
Payne Law Firm offers 12 services including Chapter 7 Bankruptcy filing and representation (straight/liquidation bankruptcy), Chapter 13 Bankruptcy filing (wage earner plans with debt repayment), Chapter 11 Bankruptcy for business debt reorganization, Subchapter V Chapter 11 for small business relief, Garnishment and levy prevention/relief via Motion to Set Payments, and 7 more.
Payne Law Firm has profile signals associated with 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.
Key strengths: 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. Areas to consider: No pricing transparency on website—legal fees not disclosed, requiring direct inquiry; Limited geographic service area (Memphis-focused), unclear if they serve outside Tennessee.
In the Bankruptcy Services category, comparable providers include Bankruptcy Lawyers Memphis TN, Chapter 13 Trustee, Law Office of Steven F. Bilsky. Each company has different strengths, so compare services, pricing, and consumer complaint records before deciding what to do next.
CreditDoc Profile Note
Payne Law Firm is profile signals 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.
Memphis bankruptcy law firm specializing in Chapter 7 and Chapter 13, with qualifying clients eligible for $0 upfront attorney fees on Chapter 13 cases.
Profile signals: Memphis-area individuals considering Chapter 13 who cannot afford upfront legal fees, Debtors with complex financial situations who benefit from an attorney with a CPA background
Court-appointed Standing Chapter 13 Trustee for the Middle District of Tennessee, administering bankruptcy repayment plans in Nashville and surrounding areas since 1982.
Profile signals: Individuals who have filed or plan to file Chapter 13 bankruptcy in the Middle District of Tennessee, Employers of debtors subject to payroll deduction orders under a Chapter 13 plan
Law Office of Steven F. Bilsky provides bankruptcy legal representation for individuals and businesses in Memphis, Tennessee, specializing in Chapter 7 and Chapter 13 filings.
Profile signals: Memphis and surrounding Tennessee residents facing overwhelming consumer debt considering Chapter 7 liquidation, Business owners seeking Chapter 11 reorganization or personal Chapter 13 debt restructuring plans
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Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
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.
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).
A federal agency created in 2010 to protect consumers from unfair financial practices. They write rules, supervise financial companies, and handle consumer complaints.
The CFPB is your most powerful ally against high-cost 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.
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 are required to stop contacting you if you request in writing.
Knowing your FDCPA rights stops abusive collection tactics. If a collector violates the law, you may have a right to 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.
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 has obtained a judgment.
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.
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.
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.
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.
Chapter 13 may be more relevant 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.
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.
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 is generally required to 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.
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.
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).
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.
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.
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.
Consolidation is generally most useful 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.
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.
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.
The percentage of your monthly gross income that goes toward paying debts. Lenders use it to judge whether you can afford another loan payment.
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.
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.
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 has obtained 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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