Understanding Social Security Disability Lawyer Fees

Contingency Fee Structure

Most Social Security Disability lawyers work on a contingency fee basis, meaning they only get paid if you win your case. This arrangement is common because many applicants for disability benefits are dealing with financial hardship and may not have the funds to pay a lawyer upfront. The lawyer’s fee will typically be a percentage of the backpay you receive from the Social Security Administration (SSA).

The Maximum Percentage a Lawyer Can Charge

According to the Social Security Administration, the most a lawyer can charge for representing you in a Social Security Disability case is 25% of your past-due benefits, also known as backpay. Backpay is the amount of money that you are owed from the date you applied for disability benefits until the date you are awarded your benefits.

However, there is a cap on the amount a lawyer can charge. The total fee is limited to $6,000, even if 25% of your backpay exceeds that amount. For example, if your backpay is $50,000, the lawyer can only collect $6,000, even though 25% of $50,000 would be $12,500.

How Are Fees Paid?

The fee is usually deducted directly from your backpay award, and you don’t have to pay it out of pocket. The SSA will review the fee agreement between you and your lawyer to ensure it’s reasonable. Once approved, the SSA will send the agreed-upon amount directly to your lawyer from your backpay.

Additional Fees and Costs

While the contingency fee is the primary cost, some lawyers may charge additional fees for out-of-pocket expenses such as:

• Medical record retrieval costs.
• Fees for obtaining expert opinions (e.g., medical professionals).
• Costs for transcripts of hearings or other documentation.

These fees are typically charged in addition to the 25% contingency fee, and you’ll be informed of any expenses before they are incurred.

No Fee Unless You Win

One important benefit of working with a Social Security Disability lawyer is that they typically don’t charge any upfront fees. This “no win, no fee” structure means that if your claim is denied, you won’t owe the lawyer any money for their services. This arrangement allows you to get professional legal help without the financial risk of paying upfront.

What to Look Out For When Hiring a Disability Lawyer

While many Social Security Disability lawyers work on a contingency fee basis, it’s important to ensure that you understand the full fee structure before agreeing to representation. Some lawyers might try to charge additional fees, so always clarify the following points before signing a contract:

• The total percentage of your backpay the lawyer will take.
• Additional costs or fees not covered by the contingency fee.
• How fees will be deducted (i.e., directly from your backpay or from you).

Why Hiring a Lawyer Can Be Worth the Cost

While you can apply for Social Security Disability without a lawyer, hiring one can significantly improve your chances of winning. A skilled lawyer can help you gather medical evidence, navigate the application process, and represent you during hearings. They are familiar with the SSA’s rules and procedures, which can be complicated for someone without legal expertise.