Navigating the Social Security Disability system can be challenging. Representation by a disability benefits lawyer could help, but people hesitate from seeking legal representation because they believe they cannot afford it.
If you are afraid that you do not have the money to pay legal fees, it may surprise you how Social Security disability lawyer gets paid. Lawyers handle disability claims on a contingency-fee basis. They receive payment for their services only when the person they represent is awarded compensation.
How Do Contingency Fees Work With Social Security Disability?
When you hire a disability lawyer to represent you in a Social Security Disability Insurance or Supplemental Security Income claim, a written agreement is signed by you and the lawyer. It explains the disability lawyer payment process, including how the lawyer agrees to represent you without collecting a fee in advance.
A contingency fee means your lawyer gets paid from a portion of the back pay or benefit arrears awarded to you when your claim is approved. If you do not win the case, a contingency fee disability lawyer does not receive payment of a legal fee.
The Social Security Administration must approve the fee arrangement reached between you and your disability attorney. When there is a favorable outcome with an award of benefit arrears, Social Security pays the SSDI attorney fees, with the remainder of the arrears paid to you. An SSDI or SSI lawyer cost is not paid from current or future monthly disability benefits awarded to you.
A written contingency fee agreement is a contract between you and your disability attorney. Review it carefully with your attorney before signing it.
SSDI And SSI Back Pay
When you submit a claim for disability benefits, you may be entitled to back pay. SSI applicants may be entitled to back pay from the date of their application until the date of approval.
Applicants for SSDI benefits may receive back pay starting from the onset date of their disability. The disability onset could, depending on the circumstances, be before the application date. A disability lawyer can explain how back pay would be computed based on the facts of your claim.
How Much Can Be Charged As SSDI Attorney Fees?
The Social Security Administration rules for fee arrangements limit the portion of the back pay that a lawyer may receive to no more than 25% of the arrears. However, regardless of the amount of the arrears awarded to you, the fee paid to the lawyer cannot exceed $9,200.
Appeal Levels May Affect The Legal Fees
There are four levels in the appeal process:
- Reconsideration
- Hearing with an administrative law judge
- Appeals Council review
- Federal court review
Legal fee agreements provide for a 25% contingency fee with a $9,200 maximum for appeals to specific levels, such as reconsideration and hearing. The agreement may allow an attorney the option to petition the Social Security Administration for approval of a fee in excess of the $9,200 maximum if the claim requires appeals to the Appeals Council or federal court levels, which can be more complex and require additional work and skills.
Can Disability Lawyers Recover Out-Of-Pocket Expenses?
A fee agreement may permit a disability lawyer to recover out-of-pocket expenses, such as the following:
- Fees charged by your healthcare providers for copies of your medical records.
- Fees charged by expert witnesses.
Your attorney may, if permitted by the fee agreement that you signed, ask you to pay a nominal amount at the start of the case to cover out-of-pocket expenses. Discuss the type and anticipated cost of out-of-pocket expenses with your lawyer, who will explain them to you to ensure you feel comfortable with the fee agreement.
Consult A Disability Lawyer
When you have questions about disability benefits available through the Social Security Administration, contact a disability lawyer for the answers. Many disability attorneys provide free initial consultations.
