Fee Structure for Social Security Attorneys

Contingency Fee Basis

Most Social Security Disability attorneys work on a contingency fee basis. This means that you don’t pay any upfront fees. Instead, your attorney’s fee is a percentage of the back pay you receive if your claim is approved. Typically, the fee is set at:

• 25% of your back pay, up to a maximum of $6,000.

This fee is deducted directly from your back pay by the SSA, so you don’t have to pay anything out-of-pocket. If you don't win your case, your attorney doesn't receive a fee. This contingency system helps ensure that lawyers are motivated to get you the benefits you deserve.

Cap on Attorney Fees

The SSA places a cap on how much a Social Security attorney can charge. The maximum fee is 25% of your back pay or $6,000, whichever is less. If your back pay amount is over $24,000, the attorney can only charge the maximum fee of $6,000. This is designed to protect claimants from excessively high legal fees.

Example:

• If your back pay is $20,000, your attorney’s fee will be $5,000 (25% of $20,000).
• If your back pay is $50,000, your attorney’s fee will be capped at $6,000 (25% of the back pay).

No Fees for the Application Process

Many attorneys offer a free consultation to discuss your case, and you won’t have to pay for initial advice or assistance in filing your claim. You only incur fees if your case is successful and you are awarded back pay. If you’re denied at the initial application stage, the attorney doesn’t charge you, but you might need to pay for any other services you’ve received, such as medical record retrieval or expert opinions.

Costs in Addition to Attorney Fees

While attorney fees are capped, there may still be additional costs involved in pursuing your disability claim. These costs can include:

• Medical records fees: If you need to obtain copies of your medical records or if your attorney needs to request additional medical documentation.
• Expert witness fees: In some cases, your attorney might hire medical experts or vocational experts to support your case.
• Filing fees: While the SSA does not typically charge for filing a disability claim, there may be costs related to obtaining court documents or other procedural steps.

These costs can be added to your overall expenses, but they are usually small compared to the attorney’s fee and are generally only paid if you win the case.

Payment of Fees

Once your case is approved, the SSA will deduct the attorney’s fee from your back pay and send it directly to the attorney. This payment is made only after your claim is approved and you receive your back pay. The SSA ensures that the fee structure is clear and transparent, so you know exactly what to expect.

Why Hire a Social Security Attorney?

Even though there are no upfront costs, you might be wondering whether it’s worth hiring a Social Security attorney. Here are some reasons why it can be beneficial to have legal representation:

• Increase Your Chances of Success: Having an attorney who understands the complex disability process can significantly improve your chances of being approved for benefits. Studies show that applicants with legal representation are more likely to win their cases.
• Expert Knowledge of the System: Social Security Disability claims can be complicated, and an attorney knows how to navigate the system, fill out the paperwork, and gather the necessary evidence to strengthen your case.
• Help with Appeals: If your claim is denied, an attorney can help you file an appeal and represent you at your hearing before an Administrative Law Judge (ALJ), which is critical for winning your case.