Disability Lawyers Work on a Contingency Fee Basis

Most disability lawyers work on a contingency fee basis, meaning they only get paid if you win your case and are awarded benefits. This means there are no upfront costs or hourly fees. Instead, the lawyer’s fee is a percentage of the back pay (lump sum) you receive after being approved for SSDI or SSI.

• Common Contingency Fee: Typically, the contingency fee for disability lawyers is 25% of the back pay you are awarded, up to a maximum amount of $6,000. This fee structure is regulated by the Social Security Administration (SSA), so lawyers cannot charge more than this set amount for SSDI and SSI claims.

What Does the Lawyer’s Fee Cover?

The contingency fee is for the lawyer’s services in handling your case. This includes:

• Filing the Application: Helping you complete and submit your disability application to the SSA.
• Gathering Evidence: Collecting medical records, doctor’s opinions, and other relevant documentation to support your claim.
• Representing You in Hearings: If your case is denied and goes to a hearing, the lawyer will represent you before an Administrative Law Judge (ALJ).
• Appealing Denials: If your claim is denied, a lawyer can help with the appeals process to improve your chances of a favorable decision.

Limits on Fees for Disability Lawyers

The SSA has strict rules governing how much a lawyer can charge for disability claims. Here are some important details:

• $6,000 Cap: The maximum fee a lawyer can charge is generally 25% of your back pay, up to a maximum of $6,000. If your back pay is less than $24,000, the lawyer’s fee will be 25% of the total amount.
• For example:
• If your back pay is $20,000, the lawyer’s fee would be $5,000 (25% of $20,000).
• If your back pay is $50,000, the lawyer’s fee would be the maximum of $6,000.

• If Your Case is Denied: If you do not win your disability case, the lawyer will not receive any payment for their services. This is one reason why disability lawyers typically choose to take on cases they believe have a high chance of success.

• Direct Payments from the SSA: If you win your case, the SSA will typically pay the lawyer’s fee directly from your back pay. You won’t need to pay the lawyer upfront. This system ensures that lawyers are only paid if you win your case.

Additional Costs to Consider

While most disability lawyers charge a contingency fee based on your back pay, there may be some additional costs involved in the process:

• Medical Records: You may need to pay for the cost of obtaining medical records, diagnostic tests, or other documents needed to support your claim.
• Expert Witness Fees: If your case requires expert testimony (such as from a medical expert), the expert’s fees may also be part of the costs. These costs may be deducted from your back pay or paid separately, depending on the agreement with your lawyer.

Before hiring a lawyer, it’s important to clarify any additional costs that may be involved.

Do You Really Need a Lawyer?

While you can technically file for SSDI or SSI without a lawyer, having legal representation can greatly improve your chances of success. Disability lawyers are familiar with the SSA’s requirements and can help ensure that your application is complete and meets all the necessary criteria.

If you’re unsure about whether to hire a lawyer, consider the following:

• Complexity of Your Case: If you have a complicated case or a denied application, a lawyer can help guide you through the appeals process.
• Better Chance of Approval: Research has shown that individuals who have legal representation are more likely to be approved for benefits, especially if their case goes to a hearing.